Bank of Israel cuts benchmark rate to 4.50% from 4.75%

It’s the first day of 2024 and the quietest non-weekend day of the year in the FX market but it’s not technically closed. With that, the Bank of Israel has set the global theme of the year with a rate cut

  • First rate cut since April 2020
  • Sees 2% GDP growth in 2023 and 2024 (unchanged from prior forecast)
  • The war is having significant economic consequences
  • Staff forecast unchanged at 3.75-4.00% one year out
  • Indicators of economic activity point to a gradual recovery following sharp decline at the start of the war

This article was written by Adam Button at www.forexlive.com. Source