Policy-making amid war in Gaza

Bank of Israel has implemented a textbook crisis response, but uncertainty remains

Central bankers have faced a multitude of challenges in the past few years: the Covid-19 pandemic; Russia’s invasion of Ukraine and the associated high food and energy prices; sticky inflation and higher-for-longer interest rates; record levels of indebtedness; and ‘derisking’ amid heightened geostrategic tensions. Managing policy in this uncertain environment is exacerbated by ‘tectonic’ shifts associated with changes in climate, demographics and digitalisation.

Matters became more complicated

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