Comments from Bank of Israel’s Abir
- Shekel appreciation would make it tougher for inflation to move back to 1-3% annual target
- Rate cuts remain on the table but other tools can be used that will have more impact
- Barrier to reducing rates below zero is much higher than reducing it to 0.1% or zero
- Limited room on rate cuts but unlimited room on buying US dollars
- Forex intervention also aimed at introducing volatility into the market
Those are some intriguing comments.