If financial institutions are fairly mature, markets are efficient and there is low uncertainty, the effectiveness of monetary policy increases as the monetary signals are smoothly transmitted to the entire spectrum of the yield curve. SBP, through its various policies and initiatives, has been endeavoring to create an enabling environment for the financial institutions as well as the markets.
•  The success in dealing with short term challenges, and the reasonable state of the economy relative to the global environment permits an enhanced effort to reduce the gap between Israel and other advanced economies in several areas and to prepare the economic infrastructure for the future.