Israel’s central bank and monetary authority
Ultra-Orthodox political figures have warned of stepping back from cooperation with government bodies and even triggering economic pressure in response to ongoing efforts to conscript yeshiva students. The rhetoric comes amid rising protests and a broader national debate over military exemptions for Haredi men, with a High Court ruling already mandating enlistment.
The Times of Israel reports that the strengthening shekel is raising costs for Israeli tech firms and forcing some to cut costs, shift hiring abroad, and consider relocating R&D. Authorities are under pressure to support exporters and startups as the currency remains strong and inflation risks stay elevated.
Prices have fallen across major Israeli cities amid war-related uncertainty. April data show a 19% drop in apartment transactions and a sharp decline in investor purchases, while foreign buyers led Jerusalem's 2025 acquisitions.
The West Bank faces a cash surplus problem as the Palestinian banking system holds far more Israeli shekels than it can convert to electronic balances. Banks are constrained by Israel’s cash transfer limits, while cash from Palestinian labor and commerce continues to flood in. The result is a liquidity crunch that is hampering daily commerce.
A mix of mortgage rates remaining elevated and inventory growth is shaping US and UK housing markets. Cash sales have cooled, financed buyers are gaining ground, and prices show modest changes in several markets. Analysts warn of continued affordability challenges and potential further rate-related pressure.