The Bank of Israel (BoI) announced it’s put a repo program for corporate and government bonds into operation, the goal of which is to supply shekel liquidity to institutional entities and to mutual funds against government and corporate bonds.
“In view of the war, the Monetary Committee’s policy is focusing on stabilizing the markets and reducing uncertainty, and it has activated a program to sell foreign exchange and to provide liquidity in the swap and repo markets. The interest rate path, and the use of additional monetary policy tools, will be determined in accordance with this purpose and with developments in the war, as well as with data on economic activity and the inflation dynamics, in order to continue supporting the markets’ stability and achieving the policy objectives and the needs of the economy,” the BoI said in a statement.