FX.co ★ Israel’s M1 Growth Cools Sharply to 2.7% in March, Signaling Slower Liquidity Expansion

Israel’s M1 money supply growth slowed markedly in March 2026, with the year-over-year rate easing to 2.7%, down from 5.7% in February, according to data updated on 14 April 2026. The figures reflect a notable moderation in the expansion of the most liquid forms of money in the economy, including cash in circulation and demand deposits.

Both the current and previous readings are measured on a year-over-year basis, comparing each month to the same month a year earlier. The sharp deceleration suggests a tightening in the pace at which transactional money is growing, which could have implications for short-term liquidity conditions and the broader monetary environment in Israel.

Analysts and market participants will likely monitor upcoming releases to assess whether March’s slowdown marks the start of a more sustained trend in money supply dynamics or a temporary pullback after February’s stronger 5.7% annual increase in M1.