Israel's central bank estimates war cost to reach $58B

Israel's central bank on Monday evening said the actual cost of the Israeli war on Gaza may reach 210 billion Shekels ($58 billion), casting a burden on the country's economy.

At a press conference, central bank Governor Amir Yaron urged Israeli Prime Minister Benjamin Netanyahu to rapidly curb public spending before the market could react badly if the government failed to do so.

Yaron's statement comes following the bank's decision to decrease its interest rate from 4.75% to 4.5% - the first reduction since 2020.

"Not acting now to adjust the budget via cuts in expenditures, removing redundant ministries and increasing revenues in view of the needs of the war is likely to cost the economy much more in the future," Yaron said.

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

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