Israel’s economy will probably expand 4.1 percent this year, powered by exports, consumer spending and home construction, the Central Bureau of Statistics said.
The Bank of Israel may emulate Switzerland and the Czech Republic in setting a floor for the shekel, as the currency trades near its strongest in 31 months, according to HSBC Holdings Plc.
One in four hedge funds is already clearing over-the-counter derivative trades, up from none in October, before new rules require changes later this year to the $583 trillion market, according to analysts at UBS AG.
Israel’s failure to cap a surge in housing prices threatens to add a new drag on an already slowing economy.
Israel’s inflation rate fell for a fourth consecutive month in April, dropping within the government’s target range for the first time since October.
Israel’s economy expanded an annualized 2.5 percent in the fourth quarter, the slowest in more than three years, as exports declined and investments fell.
Israel’s 10-year government bond dropped, pushing the yield to a record high, before a report this week that economists said will show inflation quickened. The shekel fell.
Israel’s efforts to curb the shekel’s world-beating advance and make the Middle Eastern nation more competitive are finally winning the support of currency traders.
Israel’s unemployment rate rose to 6.6 percent in the third quarter, as the number of people entering the workforce outpaced the amount of jobs created.
"As long as rates are so low and with a very real possibility and likelihood that the Bank of Israel will cut rates further, be it this month or next, this is a great opportunity for corporations to issue debt."
- Jonathan Katz on Jun 08, 2014