Bank of Israel Governor: Currency Intervention Only Needed in Case of Market Failures

Bank of Israel Governor Amir Yaron stated that currency intervention to support the weaker shekel will only be considered if there are market failures. The central bank recently kept benchmark interest rates steady at 4.75% but hinted at potential rate hikes to combat inflation. The shekel has depreciated following new legislation on the Supreme Court, sparking protests. Yaron believes that market forces should dictate the shekel's value, but if there are significant movements or market failures, the central bank has the tools to intervene. The bank expects inflation to return to target levels in the first quarter of next year but remains vigilant and ready to raise rates if necessary.