Bank of Israel holds rates at 0.10%

The latest from Israel’s central bank

  • Sees economy contracting 4.5% this year vs 5.3% prior
  • Sees growth of 6.8% in 2021 vs +8.7% prior
  • Inflation forecast at -0.5% this year vs -0.8% prior
  • Sees +0.7% inflation in 2021 vs +0.9% prior
The central bank said it would expand the use of existing tools, including interest rates (negative?) and operate additional ones if crisis lengthens.
I wonder if this is a preview of what’s to come elsewhere. If central banks will start marking¬†up¬†forecasts and stepping towards the sidelines but warning that they will do more if the pandemic worsens.