Turkey's new central bank governor presented a much more realistic set of inflation forecasts and delivered a convincing message at her first Inflation Report briefing this week. The priority is clearly for a more rounded policy shift than one that focuses solely on interest rate hikes - if they follow this approach, they'll need to make sure that they raise interest rates a lot further. Elsewhere, Israel's government voted into law the first key bill of its controversial judicial overhaul this week and the big risk is that the coalition now push ahead with further polarising legislation. A lot of political risk is priced into Israel's financial markets, but the shekel could come under further downward pressure if the political crisis intensifies.
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