Israel's Central Bank Calls The Cost Of War Burdening The State's Economy

JAKARTA - Israel's Central Bank said Israel's war costs in Gaza could reach 210 milliars of Shekel or $58 billion (Rp897.3 trillion) which weighed on the country's economy.

Central Bank Governor Amir Yaron told a news conference, urging Israeli Prime Minister Benjamin Netanyahu to quickly control public spending before the market reacted badly if the government failed to do so.

Yaron's statement comes in line with the bank's decision to lower interest rates from 4.75 percent to 4.5 percent, which is the first interest rate drop since 2020.

"Not acting now to adjust the budget to cutting expenses, removing excessive ministries and increasing income considering the need for war is likely to harm the economy more in the future," Yaron said as quoted by ANTARA from Anadolu, Tuesday, January 2.

Israel has been attacking the Gaza Strip since cross-border attacks by Palestinian group Hamas on October 7, killing at least 21,978 Palestinians, mostly women and children, and injuring 57,697 others, according to local health authorities.

About 1,200 Israelis are believed to have been killed in the Hamas attack on October 7.