Israel passed a budget, hawks in flight, Turkey déjà vu

The Israeli budgets for 2021 and 2022 passed this week – the first approved budgets in three years – don’t make a big difference to the direction of fiscal policy, but contain key reforms that may help to support growth in the medium term. Elsewhere, the hawkish surprises from central banks in Poland and Czechia this week are likely to be followed by Romania's central bank at its meeting next week. Finally, concerns have continued to build that Turkey is on the brink of another currency crisis - while there are similarities with 2018, one key difference is that the lira does not look misaligned as the current account is in much better shape.