A dent in fiscal credibility could postpone easing

ISRAEL - Report 04 Dec 2023 by Jonathan Katz

1. The coalition is finding it difficult to reduce civilian expenditure (coalition agreements, especially), as it approved additional spending for the war.

2. A dent in fiscal credibility in 2024 could result in a weaker shekel and postpone monetary easing.

3. Private consumption declined sharply in October but recovered strongly by end-November during the ceasefire.

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