No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Saturday, October 4, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

BoI chief hints interest rate cut may not be imminent

by TheAdviserMagazine
2 months ago
in Business
Reading Time: 5 mins read
A A
BoI chief hints interest rate cut may not be imminent
Share on FacebookShare on TwitterShare on LInkedIn


Talking to “Globes” deputy editor Dror Marmor at the opening of the Israel Real Estate Conference yesterday evening, Governor of the Bank of Israel Amir Yaron stressed the Bank of Israel’s caution on interest rates. Yaron also commented on the decline in real estate sales in the light of macro-economic conditions.

When will the high interest rates in Israel start to fall?

Yaron: “It has to be understood that inflation is still above the target range at the moment, and is running at 3.3%, and besides that some elements of it are sticky. The outstanding item is rents, where inflation has been at around 4% for a long time. Everyone understands how important the interest rate is for financing real estate projects, or for the economy in general, but it must be remembered that price stability is an essential condition for a properly run economy and a growing economy.”

Yaron pointed out that inflation first and foremost hurts the economically weaker sections of the population, and so it’s important not to allow it to rear its head. “The price of a mistake and the price of correcting it will be much more painful,” he said.

Nevertheless, we are seeing the supply of homes at a peak, and contractors’ sales are stagnating, and according to your own forecast for August inflation will fall below the 3% level. Does that not allow you to cut some slack?

“At the moment, inflation is above target. And apart from the sticky elements, following Operation Rising Lion, in which homes were hit, there will probably be even more pressure on rents, which will affect inflation, and we are liable to see more and more pressure.” Yaron stressed that the Bank of Israel was doing everything it could to prevent inflation from strengthening, adding that “it’s exactly like antibiotics, which you have to take until the end even if you start to feel a little better.”

Yaron also commented on the uncertainty that still exists in the Israeli economy, driven by two forces. “On the one hand we are seeing improvement in many market parameters, reflecting an improvement in Israel’s geopolitical position, but what really affects inflation in general is appreciation of the currency. The other side of the coin is that that same improvement in the geopolitical situation that the markets reflect is liable to bring with it renewed demand pressures.” In Yaron’s view, this is a good situation for the economy, but he said that as far as inflation was concerned these were two opposing forces. “At the moment, we don’t know which of these forces will be dominant in the short term.”





RELATED ARTICLES




Jerusalem Mayor: We will soon have positive migration


Bank Leumi CEO: Bureaucracy adds 10% to home prices






On the appreciation of the shekel, Yaron explained that when demand is high, it’s not certain that we won’t see transmission from strengthening of currency, “and therefore we need to follow that cautious, data-dependent policy.”

On future interest rate cuts, Yaron said, “The forecast of the Research Department is for three interest rate cuts within a year, but that relates only to a scenario in which we really see inflation coming within the target range.”

You mentioned demand pressures, and we are two years into very high interest rates, and yet demand in the housing market is still relatively high. To what extent does that surprise you? And did you restrict the financing offers a little too late?

“First of all, the economy has demonstrated very high resilience and strength, certainly given what has happened here since October 7. You have to remember that a tectonic event happened here, and in the last quarter of the year was still an annual 3.5%, which is around the potential of the Israeli economy. At present, we still have a gap of 4% from where we should have been were it not for this whole terrible event, but we are seeing a renewed rise in credit card purchases as well.”

On real estate, Yaron said, “We have a high birth rate, and very high demand for housing, which is an outstanding feature of Israel. What happened here on October 7 was that at first there was a halt in demand, and the contractors’ special offers played a very important bridging role.”

Yaron explained, however, that at a certain stage “the special offers became tooo widespread and so the Bank of Israel decided to intervene wearing its consumer protection hat.”

But we’re still seeing street signs advertising finance offers with zero interest rates and payment only after five years.

“We constantly monitor the market, but the big distinction I make is between real estate offers that still give the customer some kind of protection in that he completes a questionnaire about his financial circumstances, and knows where he will be in the process in three or four years’ time, versus a situation in which you put down 10% from your own money and get no help from a mortgage consultant, or a bank, or any other adviser, and you don’t know where you will be in another three or four years and whether you will be able to meet your commitment.

“The Bank of Israel understands that there will be further developments, and we continue to monitor and ensure that this will not be something that will cause problems for the consumer, or problems for the economy in general.”

On the large supply of homes, Yaron said, “It needs to be understood that of a stock of 80,000 homes, only about 20,000 are homes ready for occupation. Much of the supply of homes is only on paper.”

You know that half of the children born in Israel today are born into the haredi and Arab families, and we have a problem with the rate of people joining the workforce in these sections of the population, particularly haredi men and Arab women. You warn about this year after year, but not much has changed, certainly not at the rate you expected.

“First of all, you’re right, bringing Arab women and haredi men into the workforce is something I have been talking about since I took up the post. When you look at general measures of productivity, of education, we have a very big problem.

“As far as the haredi population is concerned, you have to understand that in, say, 2050-2060, they will be twenty something percent of the total population, while Arab society’s proportion of the population will remain at its current percentage. That will of course weigh heavily on the economy. We won’t be able to grow in the way we would like.

“We’d like them to join the workforce, and earn well, and in order to do that they must have the core curriculum. We know that that is the key to later success, certainly in a changing world with AI in which you need very good general skills with which you can develop.”

Full disclosure: The conference was held in cooperation with Bank Leumi and sponsored by Mivne Group, Shikun and Binui, Solel Boneh and the Fischer law firm. (FBC)

Published by Globes, Israel business news – en.globes.co.il – on July 22, 2025.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.




Source link

Tags: BoIchiefcuthintsImminentinterestrate
ShareTweetShare
Previous Post

Blackstone makes majority growth investment in network automation and AI platform NetBrain (BX:NYSE)

Next Post

Halliburton (HAL) Q2 2025 earnings drop on lower revenues

Related Posts

edit post
NATO ally warns of ‘hybrid war’ threat from Russia as drones plague European military bases and airports

NATO ally warns of ‘hybrid war’ threat from Russia as drones plague European military bases and airports

by TheAdviserMagazine
October 4, 2025
0

Denmark, a founding member of NATO, has added to growing alarms about the threat of “hybrid war” from Russia as...

edit post
Robert Kiyosaki Slams Warren Buffett’s Gold and Silver U-Turn, Predicts Market Crash

Robert Kiyosaki Slams Warren Buffett’s Gold and Silver U-Turn, Predicts Market Crash

by TheAdviserMagazine
October 4, 2025
0

Financial educator Robert Kiyosaki expressed concerns over Warren Buffett‘s recent endorsement of gold and silver investments, hinting at a possible market crash....

edit post
The U.S. is about to hold the government’s biggest coal sales in over a decade even as demand wanes

The U.S. is about to hold the government’s biggest coal sales in over a decade even as demand wanes

by TheAdviserMagazine
October 4, 2025
0

U.S. officials in the coming days are set to hold the government’s biggest coal sales in more than a decade,...

edit post
Dow Jones Futures: Rally At Highs With Nvidia A Buy, Palantir A Sell; Big Tesla News Due

Dow Jones Futures: Rally At Highs With Nvidia A Buy, Palantir A Sell; Big Tesla News Due

by TheAdviserMagazine
October 4, 2025
0

Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally hit...

edit post
Indonesia school collapse death toll rises to 17, dozens still missing

Indonesia school collapse death toll rises to 17, dozens still missing

by TheAdviserMagazine
October 4, 2025
0

The death toll in an Indonesian school collapse rose to 17 on Saturday, officials said, as rescuers deployed heavy machinery...

edit post
Vedanta Q2 Update: Record aluminum, alumina production; Zinc India delivers best-ever mined metal output

Vedanta Q2 Update: Record aluminum, alumina production; Zinc India delivers best-ever mined metal output

by TheAdviserMagazine
October 4, 2025
0

The Anil Agarwal-led Vedanta Ltd, on Saturday, reported record highs in aluminum, alumina, and mined metal production for the second...

Next Post
edit post
Halliburton (HAL) Q2 2025 earnings drop on lower revenues

Halliburton (HAL) Q2 2025 earnings drop on lower revenues

edit post
Warren Buffett knocks down reports that Berkshire’s BNSF taps Goldman for a railroad takeover

Warren Buffett knocks down reports that Berkshire's BNSF taps Goldman for a railroad takeover

  • Trending
  • Comments
  • Latest
edit post
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
California May Reimplement Mask Mandates

California May Reimplement Mask Mandates

September 5, 2025
edit post
Does a Will Need to Be Notarized in North Carolina?

Does a Will Need to Be Notarized in North Carolina?

September 8, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

September 9, 2025
edit post
Tips to Apply for Mental Health SSDI Without Therapy

Tips to Apply for Mental Health SSDI Without Therapy

September 19, 2025
edit post
Earnings Preview: Fastenal poised for another positive quarter, despite tariff woes

Earnings Preview: Fastenal poised for another positive quarter, despite tariff woes

0
edit post
NATO ally warns of ‘hybrid war’ threat from Russia as drones plague European military bases and airports

NATO ally warns of ‘hybrid war’ threat from Russia as drones plague European military bases and airports

0
edit post
Meet Audit Intelligence Test: Automated audit testing

Meet Audit Intelligence Test: Automated audit testing

0
edit post
Decoding the Crypto Mindset with NLP: Bitcoin, Reddit, and FTX

Decoding the Crypto Mindset with NLP: Bitcoin, Reddit, and FTX

0
edit post
Shop Your Way Mastercard to be Discontinued

Shop Your Way Mastercard to be Discontinued

0
edit post
Instacrops will demo its water-saving, crop-boosting AI at TechCrunch Disrupt 2025

Instacrops will demo its water-saving, crop-boosting AI at TechCrunch Disrupt 2025

0
edit post
NATO ally warns of ‘hybrid war’ threat from Russia as drones plague European military bases and airports

NATO ally warns of ‘hybrid war’ threat from Russia as drones plague European military bases and airports

October 4, 2025
edit post
Instacrops will demo its water-saving, crop-boosting AI at TechCrunch Disrupt 2025

Instacrops will demo its water-saving, crop-boosting AI at TechCrunch Disrupt 2025

October 4, 2025
edit post
Robert Kiyosaki Slams Warren Buffett’s Gold and Silver U-Turn, Predicts Market Crash

Robert Kiyosaki Slams Warren Buffett’s Gold and Silver U-Turn, Predicts Market Crash

October 4, 2025
edit post
Henry Moon Pie: Time to Support a Reader-Supporting Site

Henry Moon Pie: Time to Support a Reader-Supporting Site

October 4, 2025
edit post
The U.S. is about to hold the government’s biggest coal sales in over a decade even as demand wanes

The U.S. is about to hold the government’s biggest coal sales in over a decade even as demand wanes

October 4, 2025
edit post
Dow Jones Futures: Rally At Highs With Nvidia A Buy, Palantir A Sell; Big Tesla News Due

Dow Jones Futures: Rally At Highs With Nvidia A Buy, Palantir A Sell; Big Tesla News Due

October 4, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • NATO ally warns of ‘hybrid war’ threat from Russia as drones plague European military bases and airports
  • Instacrops will demo its water-saving, crop-boosting AI at TechCrunch Disrupt 2025
  • Robert Kiyosaki Slams Warren Buffett’s Gold and Silver U-Turn, Predicts Market Crash
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.