This constitutes additional reason to believe that Interest rates It probably won’t see a cut anytime soon.
The Central Bureau of Statistics said in a preliminary estimate on Sunday that the gross domestic product grew by 3.8 percent on an annual basis in the period from July to September, which exceeds expectations of 2.9 percent growth according to a Reuters poll. On a per capita basis, GDP rose 2.6 percent in the third quarter.
Overall growth was driven by gains in consumer spending, which rose 8.6 percent, a 21.8 percent jump in investment in fixed assets, and a 1.7 percent increase in exports, which offset a 10.8 percent decline in government spending.
As a result, the GDP of the business sector alone grew by 5.4 percent in the most recent quarter.
The data confirmed the GDP growth rate in the second quarter at 0.3 percent on an annual basis.
The war broke out in the Gaza Strip after an attack carried out by Hamas on October 7, 2023, on southern Israel. The scope of the war has expanded since then with battles with the Hezbollah group in Lebanon.
Data released on Friday showed that the rate Inflation It remained stable at 3.5 percent in September but still exceeded the government’s annual inflation target of between one and three percent.
Government officials said the rise in inflation was largely due to war-related supply problems, especially at a time when inflation is declining globally.
The next scheduled date for the Central Bank of Israel to make a decision on interest rates is November 25.
After lowering the base interest rate in January, the central bank left rates unchanged at the following meetings in February, April, May, July, and August, as well as in October, citing continued geopolitical tension, rising price pressures, and a more relaxed fiscal policy due to the war.
