M1 Money Supply in Israel

M1 is the most liquid monetary aggregate: cash held by the public plus shekel demand deposits. Published by the Bank of Israel, it measures the money available immediately for transactions in the Israeli economy.

The Bank of Israel publishes the monthly level of M1 in millions of shekels (NIS) within its monetary aggregates statistics, in seasonally adjusted and unadjusted forms. The year-on-year rate compares the month's level with the same month a year earlier.

Rapid M1 growth can foreshadow inflationary pressure or reflect ample liquidity; a sharp slowdown can signal monetary tightening or a shift from demand into time deposits. It is a secondary indicator the Bank of Israel watches alongside inflation.

Historical M1 levels are subject to periodic revisions by the Bank of Israel (deposit reclassifications, methodological changes), which can shift the year-on-year rate computed on revised data versus the figure first released. Its link to inflation is indirect and variable.