Central Bank Chief Criticises "Hasty" Judicial Ovehaul, Reaffirms Monetary Policy Autonomy

Bank of Israel Governor Amir Yaron told CNN in an interview today that the government's "hasty" judicial overhaul would undermine the independence of Israeli judiciary and cause economic problems for the country.

• “Right now, the changes in the judicial reform could weaken some of this independence. Moreover, the process itself is hasty and does not have a wide agreement in the public.”
• Yaron argued that investors could move funds out of country and said he had already received such signals from some companies, adding that this could have long-term implications, such as brain drain.
• The Governor sought to play down concerns over any potential attempts to undermine the independence of the Israeli central bank, noting that "all our leaders and decision-makers ultimately understand" the importance of the matter.
• Yaron said that the central bank is trying to tame price pressures and highlighted the risks associated with slowing the pace of rate hikes too early, while recognising that the process might be painful.