ISRAEL
Analyst
Sani Ziv
UN Economic ConsultantRecent Country Insights
Bank of Israel cuts rates to 3.25% in a somewhat unexpected move
ISRAEL · In Brief · 02 Sep 2026 · 1 response
The Bank of Israel cut its policy rate by 25bp to 3.25%, its third consecutive rate cut. The decision was somewhat surprising. As we noted ahead of the meeting, when the decision when the decision is not clear-cut, the Bank of Israel has generally tended to err on the side of caution. This time, ...
Weekly report, August 31, 2026: BoI rate decision tomorrow, politics approaches the candidate-list deadline, and some loss of economic momentum
ISRAEL · Report · 31 Aug 2026
The Bank of Israel will announce its interest-rate decision tomorrow. The decision appears finely balanced, although our view remains that the Bank is more likely to wait rather than cut rates. The August CPI is forecast to rise by a relatively high 0.8%, followed by a 0.2% decline in September. ...
Weekly report, August 24, 2026: Nvidia boosts Israel’s GDP growth, rate cut remains a close call, Netanyahu strengthens his grip on Likud
ISRAEL · Report · 24 Aug 2026
New CBS data show a widening gap between Israel’s headline GDP and domestic growth, largely reflecting Nvidia-related production abroad. We have revised our 2026 forecast, with GDP growth at 4.2% and exports rising 10.2%. The weaker domestic picture strengthens the case for monetary easing, but f...
Production abroad, led by Nvidia, is becoming a significant driver of Israel’s GDP growth
ISRAEL · In Brief · 21 Aug 2026
The release of the Q2 national accounts has renewed the discussion over the growing impact of production abroad by Israeli companies on Israel’s GDP, and particularly the contribution of Mellanox, acquired by Nvidia in 2020, to recent GDP growth. The discussion intensified after the CBS began pub...
Israel’s recovery loses some momentum at the start of Q3
ISRAEL · In Brief · 20 Aug 2026
The Bank of Israel’s new monthly activity index declined by 0.12% in July, following a strong 15.4% annualized increase in Q2. The index is still 1.8% above its February level, pointing to a significant recovery in activity following the war with Iran. The three-month measure increased by 0.5%, a...
Inflation expectations edge higher as economic activity rebounds
ISRAEL · In Brief · 18 Aug 2026
Forecasters’ inflation expectations increased slightly to 2.0% in August, from 1.9% in July and 1.8% in June. The increase followed a slightly higher-than-expected July CPI reading of 0.3%, compared with market expectations of 0.1%-0.2%. We expect the August CPI to rise by 0.8%, which could also ...
Weekly report, August 17, 2026: Strong macroeconomic data meets political and geopolitical woes
ISRAEL · Report · 17 Aug 2026
Key headlines: * Israel’s macroeconomic fundamentals continued to surprise positively. July inflation declined to 1.5%, while Q2 GDP rebounded by 15.9% annualized, much more strongly than expected. * The September 1 Bank of Israel decision is becoming a close call. Strong growth, rapid wage...
High-tech employment remains stable, but AI is changing hiring patterns
ISRAEL · In Brief · 11 Aug 2026
In recent months, the debate regarding the impact of AI on the labor market has intensified. This has been driven by a growing number of announcements from technology companies about layoffs and efficiency measures. Against this backdrop, a recent survey by the Israel Innovation Authority and Zvi...
Weekly report, August 10, 2026: Israel's election campaign heats up; the budget "miracle" continues
ISRAEL · Report · 10 Aug 2026
Key points: Israel's election campaign is advancing ahead of the October 27 election. The latest polls continue to show a highly divided political map. The current coalition, led by Likud together with the ultra-Orthodox and right-wing parties, has around 50 seats. The opposition has around 59...