In a tight job market, employees not wanting to see their salaries eroded, demand raises, which fuels inflation, and could result in more Bank of Israel interest rate hikes.
Leader chief economist Yonatan Katz predicts the political situation will affect the rating companies' forecasts on Israel's credit level, and may even result in damage to Israel's rating outlook.
Approval of 1st element of contested judicial overhaul, despite mass protests, raises country's risk premium; credit rating agencies likely to put Israel on close watch, says IBI