Bank of Israel cuts benchmark rate to 4.50% from 4.75%

<p>It's the first day of 2024 and the quietest non-weekend day of the year in the FX market but it's not technically closed. With that, the Bank of Israel has set the global theme of the year with a rate cut</p><ul><li>First rate cut since April 2020</li><li>Sees 2% GDP growth in 2023 and 2024 (unchanged from prior forecast)</li><li>The war is having significant economic consequences</li><li>Staff forecast unchanged at 3.75-4.00% one year out</li><li>Indicators of economic activity point to a gradual recovery following sharp decline at the start of the war</li></ul>

This article was written by Adam Button at www.forexlive.com.