Trump-Zelensky meeting ahead, Fed rate outlook in focus - what’s moving markets
Investing.com - The Bank of Israel (BoI) is likely to extend its rate pause at its upcoming policy meeting on August 20, maintaining the current 4.50% policy rate, according to a recent UBS analysis.
The central bank maintained a hawkish stance at its July meeting, citing elevated domestic and global uncertainty, tight labor market conditions, and risks of increased demand amid supply constraints, while providing no clear guidance on potential rate cuts.
Recent inflation data has reinforced expectations for continued policy caution, with June inflation reaching 3.3%, exceeding market expectations of 3.1%.
UBS analysts anticipate the BoI will only consider monetary easing at its September or November meetings, with decisions contingent on incoming economic data and developments in regional security dynamics.
The bank’s cautious monetary policy approach, combined with favorable interest rate carry and broad dollar weakness, is expected to provide support for the Israeli shekel, according to the UBS assessment.
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