Bond issuance will likely continue to decline

ISRAEL - Report 02 May 2022 by Jonathan Katz

1. Government bond issuance declined in May, a trend that is likely to continue in the remainder of the year.

2. Economic indicators have been generally positive, including a tightening labor market, supportive of steady monetary tightening.

3. We expect high inflation in April (0.9% m/m) and in May (0.6%), expected to push annual inflation above 4%, towards 4.5%.

4. We expect policy rates to increase steadily to 1.25% by year-end and 1.5% one year from now.

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