Israel’s central bank left interest rates on hold at 4.75% again today and the communications continued to emphasise risks to the inflation outlook. But policymakers provided the first hint that an easing cycle could be considered in the coming months. We still expect inflation risks to remain high in the near term and we maintain our forecast for the central bank to wait until April before starting an easing cycle, but there is now a growing possibility of a rate cut in Q1.
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