Among considerations discussed when determining the interest rate was that inflation in Israel has been on an upward trend, in contrast to global trends, he said.
Ultra-Orthodox parties Shas, UTJ threaten: Without legislation to exempt most eligible haredi men from military service, we will not support budget.
The economic situation in Israel is becoming more and more complex. The cost of living continues to rise, which leads many Israelis to use loans to finance various needs in their lives.
"A prolonged war on multiple fronts could weaken economic activity further and heat inflation, raising the risk of stagflation," Barclays economist said.
"Despite criticisms, Moody’s analysis of Israel's fiscal health is overly pessimistic."
Israeli leaders need to discuss decisions and innovative solutions to maintain economic and overall stability as challenges continue to grow.
Israeli AI advancements are changing the face of payment systems for customers
This sharp drop, compared to the previous year, signals the war's significant impact on one of Israel's most vital industries.
Moody's recent downgrade of Israel's credit rating may not fully account for shifting regional dynamics and the country's economic resilience in the wake of recent strategic developments.
While it cited intensified geopolitical risk as the key driver in this ratings decision, the agency painted a complex and bleak picture of Israel's economic and political future.
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