Merrill Lynch sees weaker shekel in 2018

Shekels Photo: Shutterstock

BofA Merrill Lynch also predicts growth of 3.2% in Israel in its Global Research Outlook for 2018.

BofA Merrill Lynch has published a bullish Global Research Outlook for 2018, at least for the US, in which it sees the stock market rising and the dollar strengthening as well as rising inflation.

Regarding Israel, Merrill Lynch sees growth of 3.2% in 2018, slightly below the Bank of Israel's growth forecast of 3.3%. Growth in Israel in 2017 is expected to be about 3.1%.

On the shekel, Merrill Lynch sees the shekel weakening against the dollar to NIS 3.60/$ - above the current rate of about NIS 3.52/$.

Merrill Lynch sees inflation in Israel rising to 0.7% in 2018. Inflation in the first ten months of 2017 was 0.6%, up from the negative inflation of the previous three years. However, inflation levels are still below the government's annual target of between 1% and 3% and these low inflation forecasts bring into question whether the Bank of Israel will next year start raising the interest rate above its historic low of 0.1% - a level that has remained the same since March 2015.

Published by Globes [online], Israel business news - - on December 6, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Shekels Photo: Shutterstock
Shekels Photo: Shutterstock
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