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BREAKING
Al-Houthi: We find ourselves in the most sacred battle and the greatest position. We do not consider the sacrifices to be wasted losses; rather, we have given everything for the sake of this stance.
Al-Houthi: The Zionist scheme is undoubtedly a plot to enslave and exploit this nation. This is a fact, not an exaggeration.
Al-Houthi: Great sacrifice in the path of God only increases our steadfastness, determination, certainty, resilience, and cohesion.
Al-Houthi: The Zionist crime confirms the importance of Yemen's conscious and insightful position based on constants, values, and human ethics.
Al-Houthi: The Israeli enemy is a criminal who proves its brutality and monstrosity through all its criminal practices, void of any controls.
Al-Houthi: The Israeli enemy's record is one of terrible and horrific crimes, full of bloodshed against the Palestinian people and people in Lebanon, Syria, Iraq, and Iran.
Al-Houthi: The crime of targeting ministers and civilian workers adds to the Israeli enemy's criminal record in the region.
Al-Houthi: All of the martyrs were ministers working in civilian fields.
Sayyed Abdul Malik al-Houthi: We extend our sincerest condolences to all the martyrs' families, their loved ones, their colleagues, and our dear people.
Al Mayadeen's correspondent: An Israeli drone targeted a residential apartment in the al-Natour Square in the Sheikh Radwan neighborhood of Gaza City

'Israel' faces strain as CB holds rates, Northern evacuees in limbo

  • By Al Mayadeen English
  • Source: Agencies
  • 6 Jan 2025 18:47
3 Min Read

According to Bloomberg, 13 out of 14 analysts surveyed expected the central bank to leave rates unchanged, with one predicting a modest rate cut of 25 basis points.

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  • Cats wait as men fish on the shore of the Sea of Tabarias, northern occupied Palestine, Saturday, Dec. 14, 2024. (AP Photo/Matias Delacroix)
    Cats wait as men fish on the shore of the Sea of Tabarayya, northern occupied Palestine, Saturday, Dec. 14, 2024. (AP)

The Bank of Israel has decided to maintain its base interest rate at 4.5%, citing inflationary pressures exacerbated by the ongoing multi-front war with Resistance movements.

This decision, widely anticipated by analysts, reflects growing concerns about the economic challenges posed by the war, which has slowed the Israeli economy and driven inflation higher.

"Israel's" wars have also intensified social and regional disruptions, with a recent survey revealing that 44% of evacuees from northern areas, including settlements like Shlomi and Metula, are still undecided about returning to their settlements.

In contrast, only 5% of evacuees have definitively ruled out returning, although dissatisfaction with compensation and feelings of insecurity remain prevalent.

Economic struggles

Observers argue that the Bank of Israel's move to hold rates steady exposes the challenges policymakers face in tackling inflation and economic slowdown. While inflation is expected to rise further, the war has already slowed economic activity.

According to Bloomberg, 13 out of 14 analysts surveyed expected the central bank to leave rates unchanged, with one predicting a modest rate cut of 25 basis points.

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The ongoing wars have placed additional pressure on the regime to address economic instability, particularly in regions directly affected by war.

Northern evacuees have voiced dissatisfaction with compensation levels, which they say fail to cover the extent of their losses.

Many also report a breakdown in community cohesion, with some settlements, like Metula, experiencing pronounced social fragmentation.

Calls for immediate action

Knesset member Meir Cohen described the situation as a "wake-up call" for the leadership, urging swift action to address security concerns, inadequate compensation, and the disintegration of community ties.

"We cannot allow the north to remain neglected. The upcoming conference is an opportunity to create real solutions, not just empty statements," Cohen said.

Meanwhile, Finance Minister Bezalel Smotrich has set a deadline of March 1 for evacuees to return to their settlements, even as many express uncertainty about their future.

A youth initiative, Heading North, recently reported that 93% of young evacuees have no intention of returning, citing security and economic concerns.

Read more: More settlers emigrated from Tel Aviv, Haifa than other cities

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  • Northern Palestine
  • Israeli economy
  • Northern front
  • Bank of Israel
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