Gov't Delays Bank Rates Bill Vote After Central Bank Gov. Warning

Reuters reporting that according to a member of parliament, a vote on the legislation supported by PM Benjamin Netanyahu's right-wing coalition that would force banks to pay interest on checking accounts is set to be pushed to next week. This comes after Bank of Israel Governor Amir Yaron criticised the legislation, calling it a "very serious blow" to central bank independence.

• In a letter to Netanyahu, Yaron stated that giving the finance minister powers to set minimum rates on checking accounts would see, “The violation of the central bank’s independence embodied in the bill crosses a red line, and there is real concern that international entities and credit rating agencies will also perceive it that way,”
• Israeli assets remain vulnerable to periods of volatility as the result of political risk following months of protest and political wrangling over judicial reforms that have caused a major public and international backlash against the right-wing coalition.
• The tense security situation in the country, with violence escalating in the West Bank between Palestinians and Israeli settlers, is doing little to settle investor nerves.