Business

Tuesday, July 21, 2026 | Daily Newspaper published by GPPC Doha, Qatar.

Business

In a presentation earlier this month, Central Bank Governor Fatih Karahan said the recent uptick in underlying inflation poses upside risks to the near-term pace of price increases.

Turkish central bank seen holding rates as Middle East conflict flares

Turkey's central bank is expected to keep its benchmark interest rate at 37% this week, a Reuters poll showed on Monday, as the war in the Middle East continues to cloud the inflation outlook.All 10 economists surveyed between July 13 and July 20 forecast no change in the policy rate at Thursday's meeting. Economists nevertheless continued to expect monetary easing later in the year, leaving their year-end 2026 policy rate forecast at 35%, unchanged from the previous month's poll.In June, the central bank held its key rate at 37% for the third straight meeting, citing market and inflation fallout from the Iran war. Inflation concerns eased somewhat with the de-escalation between the US and Iran under last month's short-lived interim peace deal. June's monthly inflation in Turkey matched expectations at 0.99%.However, a recent flare-up in mutual attacks fuelled inflation concerns globally. High oil prices pose even more of a challenge for import-heavy economies like Turkey.In a presentation earlier this month, Central Bank Governor Fatih Karahan said the recent uptick in underlying inflation poses upside risks to the near-term pace of price increases.The central bank's tightening steps since the conflict broke out in late February have lifted overnight rates to around 40%, roughly 300 basis points above pre-war levels.In May, the bank raised its end-2026 interim inflation target to 24% from 16%, saying the short-term inflationary effects of the Iran conflict would remain "pronounced".Goldman Sachs said it expects rates to stay unchanged, as potentially cut-supportive factors, such as a seasonally stronger current account and easing geopolitical tensions, are unlikely to be permanent.Morgan Stanley said in a recent research note that it does not expect a rate cut before the fourth quarter due to persistent geopolitical uncertainty and deteriorating risk sentiment.Markets expect the bank to return to policy-rate funding before starting rate cuts. Investors will watch the MPC statement for clues on the timing of this shift.The central bank will announce its next interest rate decision on Thursday.

The AliExpress logo is pictured at its store, in Granada, Spain. The fine was the third issued by the European Commission under the EU's landmark Digital Services Act, which requires very large online platforms to do more to counter illegal and harmful content.

AliExpress hit with $629mn EU fine over sales of illegal, counterfeit products

Alibaba's AliExpress was hit with a record €550mn ($629mn) fine from the European Union on Monday for failing to tackle sales of illegal, unsafe and counterfeit products on its platform.The fine was the third issued by the European Commission under the EU's landmark Digital Services Act, which requires very large online platforms to do more to counter illegal and harmful content.The Commission charged AliExpress in June last year with failing to comply with a DSA requirement to assess and mitigate the risks of dissemination of illegal products.It set an October 20 deadline for AliExpress to propose remedial measures, and the company could face further penalties if the regulator decides in December that they do not comply with the DSA."This is very dangerous for consumers, unfair for companies which are complying with all our rules," EU tech chief Henna Virkkunen told reporters. She pointed to AliExpress's 193mn users in Europe last year versus Shein's 156mn and Temu's 130mn. Temu has also been fined under the DSA and Shein is facing an ongoing investigation."One in five Europeans say they shop once a month from Shein, Temu and AliExpress," Virkkunen said.AliExpress criticised the EU fine, saying it was excessive."We disagree with today's decision and the disproportionate fine, which does not adequately reflect our established framework and the significant, proactive enhancements we have made," AliExpress said in an email. "We are carefully reviewing the decision and considering all available options."The Commission said that AliExpress had not properly evaluated whether it had enough people to review the risks and had overestimated the effectiveness of its system in detecting and removing illegal products.The regulator criticised the company's recommender and advertising systems for exacerbating the spread of illegal products and its reliance on one quantitative indicator to measure its moderation system to prevent the risk of illegal products appearing or reappearing in similar forms.It said the failure of AliExpress to detect illegal products meant that illegal products ranging from counterfeit products to unsafe toys and dangerous cosmetics remained online for many weeks.The Commission also took issue with the company's ineffective penalty policy, which resulted in penalised businesses continuing to sell illegal products on its platform.It said that the mandatory AliExpress "brand authorisation" system — intended to prevent counterfeit sales — was ineffective and understaffed and was easily circumvented by traders selling fake products.