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Israel Central Bank Governor Yaron: Higher Defense Spending Could Widen Deficit and Lift Inflation

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2026-07-06 13:33:27
Israel’s central bank governor, Yaron, said that if the government significantly increases defense spending, the budget deficit would exceed its target and inflation would be higher than expected.

According to Jin10, Yaron linked a potential rise in defense outlays to both a larger-than-target fiscal deficit and inflation running above expectations.
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