Some shekel weakness likely in upcoming summer months

ISRAEL - Report 11 Jun 2018 by Jonathan Katz

Wage growth accelerated significantly in Q118 and is supportive of some inflationary pressure. The fiscal deficit remained subdued through May but is likely to reach the 2.9% of GDP target by year-end.

Zoom in: We expect some shekel weakness in the coming months, which is likely to boost inflationary expectations.

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