The Central Bank of Israel has kept the interest rate unchanged for the 13th consecutive time.

Jin10 reported on August 20 that the Israeli Central Bank has maintained the interest rate unchanged for the 13th consecutive time, cautiously weighing between economic slowdown and the ongoing uncertainty brought by the situation in Gaza. The bank kept the benchmark interest rate at 4.5% on Wednesday, in line with market expectations. The day before this decision, Prime Minister Netanyahu's cabinet approved a budget increase equivalent to about 1.5% of GDP to cover war expenses. This year's revised budget added 30 billion shekels (approximately 8.8 billion USD) for defense spending, raising the estimated fiscal deficit from 4.9% to 5.2%. Israel plans to take control of Gaza City in the coming weeks, an action that will require the conscription of tens of thousands of reservists, potentially further exacerbating supply chain tensions. A new ceasefire proposal put forward by Egypt and Qatar, which has been accepted by Hamas, may delay or even cancel the aforementioned plans. However, Israel has not yet clarified whether it is willing to cease fire immediately.