In organisational terms this is a challenge: if you embed data science locally, how can you keep the data science knowledge up to date? Conversely, if you set up data science centrally, how do you prevent empire building? At De Nederlandsche Bank, we chose a hub-and-spoke system for this – stressing joint development.
Against this background, the Bank of Israel acted both by continuously reducing the interest rate to a low level of 0.25 percent, and by intervening in the foreign exchange market, inter alia to offset the effect of natural gas production on the exchange rate.