Finance Minister Bezalel Smotrich said the annual inflation rate falling to 1.6% proves his economic policy is working, and called on the Bank of Israel governor to cut the interest rate significantly. The statement follows the publication of the Consumer Price Index data earlier today.
Finance Minister Bezalel Smotrich responded to the latest inflation data on Wednesday evening, calling the decline to 1.6% a vindication of his economic policy and urging Bank of Israel Governor Amir Yaron to deliver a 'significant' rate cut. The statement came shortly after the release of the Consumer Price Index data, which showed the annual inflation rate falling to its lowest level since 2021.
The Zioneer reported at 18:30 Jerusalem that the annual inflation rate for June fell to 1.6%, the lowest since 2021, based on data from N12 and ynet. The consumer price index was unchanged from the previous month, and apartment prices recorded a 1% monthly decline, the steepest in eight years. The thread documented the data's release in multiple updates, with the first report citing ynet, followed by additional details on the CPI flatline and the apartment price drop.
Smotrich has been a vocal critic of the central bank's monetary policy. On July 6, he described the Bank of Israel's quarter-point rate cut as 'minimal' and disconnected from the economy's needs, according to N12. The Bank of Israel had cut the rate to 3.5% on July 6, warning that recovery depends on no renewed fighting. The finance minister has consistently called for more aggressive easing, arguing that the strong shekel and market confidence leave room for further reductions.
The Bank of Israel has not yet signaled whether it will adjust rates further in response to the latest inflation data. The minister's comments come amid a broader debate over the pace of monetary easing as the economy sustains a multi-front war.
4 developments
- DevelopingSmotrich criticizes Bank of Israel governor over 'minimal' rate cut
- StrongAnnual inflation steadies at 1.9% after governor signals rate-cut easing
- DevelopingAnalysts assess Bank of Israel will cut interest rate by quarter point tomorrow
- StrongBank of Israel Cuts Rate to 3.5%, Warns Recovery Depends on No Renewed Fighting
Source and signal
- Internal intake