Bank of Israel should be ready to tighten policy, says IMF
Fund warns inflation pressures are building, and says BoI should abandon FX purchases
The Bank of Israel should be ready to abandon its accommodative stance if inflation pressures continue to increase, said the International Monetary Fund on February 6.
In December, year-on-year inflation hit 2.8%. This is within the central bank’s target band of 1–3%, but it has increased from years of below-target inflation recently. One- and two-year ahead inflation expectations have rapidly increased over the last few months.
“If underlying upward pressures become more salient, the BoI
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