Turkey’s central bank says to keep policy tight after hiking by 125 basis points

Concerns about President Tayyip Erdogan’s growing influence on monetary policy and doubts over the bank’s ability to rein in double-digit inflation have sent the Turkish lira down some 16 percent this year. (AFP)
Updated 07 June 2018

Turkey’s central bank says to keep policy tight after hiking by 125 basis points

ISTANBUL: Turkey’s central bank will decisively keep monetary policy tight until the inflation outlook displays a significant improvement, it said on Thursday, as it raised its policy rate by 125 basis points.
Elevated levels of inflation and inflation expectations continue to pose risks on the pricing behavior, the bank said in a statement, adding it would tighten monetary policy more if needed.
“The Committee decided to further strengthen the monetary tightening to support price stability,” the bank said.
Concerns about President Tayyip Erdogan’s growing influence on monetary policy and doubts over the bank’s ability to rein in double-digit inflation have sent the currency down some 16 percent this year.
To stem the sell-off, the bank hiked rates by 3 percentage points at an emergency meeting last month and said it would return to a single policy rate. Investors have been expecting further tightening, particularly after data on Monday showed annual inflation quickened to 12.15 percent in May.


US removes some Chinese furniture, modems from planned 10% tariffs

Updated 17 August 2019

US removes some Chinese furniture, modems from planned 10% tariffs

  • US President Donald Trump on Tuesday delayed more than half of the proposed tariffs until December
  • The $114 billion retail furniture industry has been among the sector’s hardest hit with price increases due to Trump’s tariffs

WASHINGTON: The Trump administration is sparing some Chinese-made household furniture, baby items and Internet modems and routers from its next rounds of 10 percent tariffs, it said on Friday.
The US Trade Representative’s office released a complete list of the items that were removed from $300 billion in tariffs scheduled to go into effect on Sept. 1 and Dec. 15, some of which had already been hit with 25 percent tariffs.
Trump on Tuesday delayed more than half of the proposed tariffs until December, saying it would help shield businesses and consumers from the US-China trade war fallout during the Christmas selling season.
The new list of 44 categories of spared imports, worth about $7.8 billion according to US Census Bureau data, also includes some chemical compounds used in the manufacture of plastics. Reuters previously reported that bibles and religious texts would be spared from the tariff list.
Modems and routers made in China were part of a $200 billion list of products hit with tariffs last September that have since been raised to 25 percent. Friday’s exclusion would avoid a further 10 percent hike as Trump imposes tariffs on Sept. 1 to products in the same broad customs category, including smart watches, smart speakers and Bluetooth headphones.
The bulk of the items removed from the tariff list were furniture products, including wooden- and metal-framed chairs and those made of plastics. Some of these were previously hit with tariffs as part of broader furniture categories.
Baby-related furniture items also were spared, including toddler beds, bassinets, cradles, strollers and children’s seats.
The $114 billion retail furniture industry has been among the sector’s hardest hit with price increases due to Trump’s tariffs, which rose to 25 percent in May.
The US Labor Department said on Tuesday that the price index for household furnishings rose 0.4 percent in July, marking its third consecutive monthly increase and contributing to broad-based growth in consumer prices during July.