Aharon Katz
Globes, Aug. 2, 2023
“When the global forecast improves, Israel will be able to restart its economy. The country’s economy is cooling, inflation is falling, and economic ties in the region are on an improving trend.”
Israel’s economic situation seems very unclear. The Knesset has entered its long summer recess, and will not convene again until October. When that happens, it is not certain whether the judicial overhaul will continue or not, and how the economy might respond either way. The international credit rating agencies have issued warnings about the political uncertainty, and indicated that it might affect Israel’s rating.
Despite the uncertainty, at least one prominent US banker is confident about Israel’s economy, and sees the situation improving substantially. Bernard Mensah, president of International at Bank of Montreal, talks to “Globes” about how the bank perceives the situation in Israel.
Bank of Montreal is one of the biggest investment banks in the world, and the second largest bank in the US in terms of market cap. It serves customers in more than 100 countries, among them, of course, Israel. In his interview, Mensah refused to comment on the current crisis in Israel, but a report by Bank of Montreal analysts published in early July stated that, in the short term, the volatility in Israel could be expected to continue, and that the depreciation of the shekel created a risk of further interest rate hikes by the Bank of Israel. … [To read the full article, click here]