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Israel: BoI keeps projection for 6.3% GDP growth this year, cuts 2022 growth to 5.0%

  • Lower contraction in 2020 to result in faster closing of gaps to pre-crisis level
  • Unemployment rate seen higher both for 2021 and 2022 than in January projection
  • Inflation to cross lower end of target band by end of 2021
  • Policy rate seen at current 0.10% one year from now
  • Risks to forecast related to new resilient virus strains, economic policy of forthcoming government

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