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Israel: Central Bank governor warns judicial changes could harm economy

March 29, 2023 at 4:22 pm

This picture taken on August 23, 2022 shows a view of the exterior of the headquarters of the Bank of Israel, the country’s central bank, in Kiryat Ben-Gurion in Jerusalem [Ahmad Gharabli/AFP via Getty Images]

Bank of Israel Governor Amir Yaron has warned that the planned judicial overhaul which the coalition government seeks to introduce will have a negative effect on the economy, stressing that any legislation must preserve the independence of state institutions, Israeli media reported.

In a letter sent to the cabinet along with the bank’s annual report for 2022, Yaron stressed that preserving strong and independent bodies is vital to the stability and prosperity of the economy over time, Time of Israel reported.

He added that there is a need to ensure the independence and professionalism of institutions in Israel, as well as a need to make “significant changes” that enjoy “broad agreement”.

The 2022 report showed Israel’s economy grew 6.4 per cent, with inflation at 5.3 per cent, and a four per cent devaluation of the shekel.

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