Turkey’s central bank, Russian ruble, Israel’s offensive

Turkey's central bank governor delivered another convincing message at this week's Inflation Report briefing and suggested that further policy tightening will be delivered over the coming months. Meanwhile in Russia, the ruble has hit a three-month high, helped in large part by the re-imposition of some capital controls. We still think the balance of risks is tilted to a weaker currency next year. Elsewhere in Israel, the military launched its ground offensive in Gaza over the weekend and the suggestions are that its operation could last for at least three months. Timely data released this week provided the first signs of a sharp hit to activity from the conflict in October.