Bank of Israel Rate Hike Pushed Back on Weak Inflation: SurveyBy
Economists expect the Bank of Israel to delay its rate hike further as consumer prices dipped back below zero in recent months, according to a new Bloomberg survey.
The central bank is now expected to keep rates on hold until mid-2018, from an expected first-quarter hike in last months’ poll. Inflation forecasts for this year fell to 0.5 percent and to 0.9 percent in 2018, from 0.7 percent and 1.2 percent, respectively.
- Survey of 13 economists conducted from Aug. 25 to Aug. 30
- 2017 GDP forecast at +3.2% y/y versus prior survey +3.4%
- 2017 CPI forecast at +0.5% y/y versus prior survey +0.7%
- 2018 CPI forecast at +0.9% y/y versus prior survey +1.2%
- The Bank of Israel will hike rates in 3Q18 versus 1Q18 previously
- See graph of GDP forecasts
Full Survey Results
|Current Acct. % GDP||3.5%||3.4%||n/a|
|Budget as a % GDP||-2.6%||-2.5%||n/a|
NOTE: All figures are expressed as of the end of the quarter except for GDP.
For custom economic forecast consensus: XLTP XCEF