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Shekel Loses Shine After BoI Rate Decision

ILS

USD/ILS has clawed back its earlier losses, which has been facilitated by the shekel's negative reaction to the language accompanying the Bank of Israel's expected 25bp rate hike. The pair last deals at ILS3.5962, virtually unchanged on the day, with familiar technical levels still in play.

  • Governor Amir Yaron warned that the government's judicial overhaul "could impact substantially on the economic and financial developments in the short term and in the longer term, and therefore on the monetary policy that will be required in the forecast period."
  • The updated forecasts from the central bank's research desk suggested that 2023 GDP growth could be +2.5% Y/Y (vs. +2.8% prior) even in the best-case scenario for the resolution of the political crisis.

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