Israeli governor warns over war spending after rate cut
Government could lose economic credibility without fiscal re-think, Yaron says
The Bank of Israel’s governor warned of economic turmoil, after its monetary policy committee cut rates for the first time in over three years.
The MPC cut rates by 25 basis points to 4.5% on January 1, as inflation continued to fall despite Israel’s military campaign in Gaza.
But governor Amir Yaron’s statement said the government must act rapidly to finance its growing military spending. Its armed forces have been fighting a campaign in Gaza after the Palestinian group Hamas attacked Israel on
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