Bank of Israel chief: New elections will be ‘negative news’ for economy

Bank of Israel Governor Amir Yaron calls on the government to swiftly pass a state budget and warns that new elections would have a negative impact on the economy, which is already reeling from the coronavirus pandemic.

“The changing morbidity trends and developments are causing great uncertainty regarding employment, businesses’ income and government intake and expenses,” the Globes financial daily quotes him as saying.

Yaron says it is therefore important that there be “stability in the conduct of the government and an orderly decision-making process,” saying this would help reduce uncertainty for households and businesses.

“The government must move forward as quickly as possible in determining a clear outline for the state budget and other economic decisions needed at this time,” the central bank chief adds. “Reducing the political uncertainty will contribute to the confidence of the markets in the Israeli economy and improve the ability to deal with the crisis. Further elections would be negative news for the Israeli economy at this time.”