Australia’s central bank hiked its key interest rate to an 18-year high on Tuesday, citing the prolonged war in the Middle East and elevated inflation.

In a statement, the Reserve Bank of Australia (RBA) said it would raise its cash rate by 25 basis points to 4.85%.

“Inflation remains elevated,” it said. “This partly reflects higher fuel and other commodity prices affected by the conflict in the Middle East.”

“AI-related investment is driving rapid growth in prices for technology-related goods, and inflation in many goods and services remains high.”

This marks the fifth increase this year, adding to household cost-of-living pressures by increasing home mortgage payments, a politically potent topic in Australia.

It brings rates to a level not seen since late 2008, at the height of the global financial crisis.

“There continue to be heightened uncertainties about the outlook for domestic economic activity and inflation,” the RBA warned.

“Global oil supply disruptions are maintaining upward pressure on global and domestic energy prices and inflation. A period of prolonged uncertainty may also cause growth to be lower overseas and in Australia,” it added.

The Daily Sabah Newsletter

Keep up to date with what’s happening in Turkey,
it’s region and the world.

SIGN ME UP

You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Türkiye’s exports surged last month to post the highest-ever October figure, while imports were up only moderately, resulting in a narrowing trade deficit, a top official announced on Tuesday.

Outbound shipments from the country rose 8.1% year-over-year to nearly $25.9 billion (TL 1.29 trillion), Trade Minister Ömer Bolat told the news conference, announcing the preliminary foreign trade data for the month.

“The highest October export record was broken last month; our goods exports rose 8.1% year-over-year to reach $25.9 billion,” Bolat said.

“This marks the third-highest monthly export volume in the 103-year history of our republic. A second significant achievement is the record for the January-October period, in which (exports) rose by 5.5% to $236.8 billion,” he added.

Annualized goods exports also climbed by $15.6 billion compared with October 2025 to reach $285.6 billion, surpassing the government’s target of $282 billion, the minister noted.

“As of the end of October, total annualized goods and services exports rose to $413 billion,” Bolat also said, adding that the government exceeded its $410 billion target set at the beginning of the year as of October.

Trade deficit down 11.4%

Imports, meanwhile, increased 3.4% on an annual basis in October to $32.58 billion, according to the Trade Ministry’s monthly foreign trade bulletin released later on Tuesday.

Consequently, the foreign trade deficit narrowed by 11.4% from October 2025 to $6.7 billion, down from $7.56 billion a year earlier.

The export-to-import coverage ratio rose by 3.4 percentage points to 79.4% in October, while the ratio excluding energy stood at 100% and excluding both energy and gold reached 101.7%.

In the first 10 months of 2026, exports grew 5.5% year-on-year to $236.84 billion, while imports rose 5.1% to $314.5 billion, resulting in a trade gap of $77.67 billion.

Germany remained Türkiye’s top export destination in October with $2.07 billion, followed by the U.S. with $1.86 billion and the U.K. with $1.38 billion.

The top 10 export partners accounted for 45.3% of total goods shipments during the month.

On the import side, China ranked first with $4.41 billion in October, followed by Germany with $2.22 billion and the U.S. with $1.77 billion.

By country groups, the EU was the largest export market, receiving $10.4 billion in Turkish goods, followed by Near and Middle Eastern countries at $4.25 billion and other European nations at $3.74 billion.

Asian countries formed the largest source of imports at $9.77 billion, followed by the EU at $9.39 billion.

By broad economic categories, intermediate goods made up 50.4% of total exports at $13.04 billion, followed by consumer goods at $8.4 billion and capital goods at $3.85 billion.

Intermediate goods also led imports with a 71.7% share at $23.36 billion, followed by consumer goods at $4.65 billion and capital goods at $4.39 billion.

Manufacturing industry products constituted 93.3% of total exports in October, valued at $24.15 billion, while agriculture, forestry and fishing accounted for 3.2% and mining represented 2.5%.

The Daily Sabah Newsletter

Keep up to date with what’s happening in Turkey,
it’s region and the world.

SIGN ME UP

You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

The Türkiye Wealth Fund (TWF) is set to become the largest shareholder in Turkish electric carmaker Togg after restructuring the company’s ownership, the fund announced Tuesday.

The fund said the change in the partnership structure aligns with Türkiye’s objectives of high value-added production and establishing a global mobility and technology brand.

Under the restructuring, a share transfer agreement was signed regarding the transfer of shares held by AG Anadolu Group Holding and Vestel Elektronik in Togg to the Türkiye Wealth Fund and Turkcell.

Vestel and Anadolu Group Holding said on Tuesday they had signed agreements to sell their stakes in Togg to TWF and telecommunications giant Turkcell, in which TWF, through a subsidiary, holds a 26.2% stake.

According to disclosures made to the Public Disclosure Platform (KAP) by the companies, AG Anadolu Group Holding has signed an agreement to transfer its 23% stake in Togg, specifically, a portion equivalent to 11% of Togg’s total capital to Turkcell, and a portion equivalent to 12% to the TWF for 184 million euros ($206.02 million).

Meanwhile, Vestel has decided to sell its entire 23% stake in Togg to the TWF for 184 million euros. Once these transactions are completed, the ownership structure of Togg will change.

The statement indicated that, upon completion of the transaction, Turkcell’s total stake in Togg will rise to 34%, while TWF’s share would rise to 35%.

Thus, under the new ownership structure, the Türkiye Wealth Fund will become the shareholder with the largest stake in Togg.

Togg was founded eight years ago after President Recep Tayyip Erdoğan called for the production of a fully locally funded passenger car.

Before restructuring, Vestel Elektronik, Anadolu Group Holding, Turkcell ⁠and BMC Otomotiv each held 23% stakes in the company. The Union of Chambers and Commodity Exchanges of Türkiye (TOBB) owns the remaining 8%.

Entering the automotive market with sales of 19,583 vehicles in 2023, Togg achieved 37,426 sales in the first nine months of this year.

Becoming the sector leader with a 31% share of the Turkish electric vehicle market during the same period, it reinforced its position in the country’s electric mobility transition.

The Türkiye Wealth Fund’s addition as a shareholder is considered a major step in the fund’s objective of realizing domestic investments aligned with Türkiye’s strategic priorities.

The Daily Sabah Newsletter

Keep up to date with what’s happening in Turkey,
it’s region and the world.

SIGN ME UP

You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Türkiye’s annual consumer inflation edged up slightly to 29.77% in October, official data showed on Tuesday.

Consumer prices also rose by 2.58% on a monthly basis in October compared with September, according to the Turkish Statistical Institute (TurkStat).

The annual rate eased from 32.87% recorded in October 2025 but increased slightly from 29.73% in September.

The 12-month moving average inflation rate stood at 31.23% in October, while price gains since December of the previous year reached 27.52%.

Among the main expenditure groups with the highest weight in the basket, food and non-alcoholic beverages climbed 27.73% year-over-year, contributing 6.81 percentage points to the annual change.

Transportation prices surged 36.39% annually, adding 6.1 percentage points to the overall index.

Housing, water, electricity, gas and other fuels jumped 40.24% compared to October 2025, contributing 4.71 percentage points.

On an annual basis, the highest price increase was recorded in education at 48.86%, followed by health at 43.29% and insurance and financial services at 31.41%.

Clothing and footwear posted the lowest annual rise among expenditure categories at 13.38%.

The Daily Sabah Newsletter

Keep up to date with what’s happening in Turkey,
it’s region and the world.

SIGN ME UP

You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Wars triggered by Israeli provocations are exerting increased pressure on global energy prices and national economies, Vice President Cevdet Yılmaz said Monday.

“As a result of the wars that started with Israel’s provocations, we are witnessing the pressure that world energy prices create on our economies,” Yılmaz said at the opening session of the 42nd Ministerial Meeting of the Standing Committee for Economic and Commercial Cooperation of the Organization of Islamic Cooperation (COMCEC) held in Istanbul.

“This situation has once again demonstrated the importance of diversifying sources and routes, and strengthening regional cooperation, particularly in ensuring energy security,” he added.

Yılmaz emphasized that COMCEC constitutes an important pillar of the Organization of Islamic Cooperation (OIC), one of the most significant global cooperation platforms, with 57 members, a population exceeding 2.1 billion and a gross domestic product approaching $10 trillion.

Underlining that COMCEC’s agenda makes valuable contributions to the Islamic world and humanity amid challenging regional and global conditions, he said the occupation, settler violence, forced displacement and systematic oppression that Palestinians have endured for years, particularly in Gaza, have opened wounds that cannot heal in the common conscience of humanity.

He expressed deep sorrow over the continued loss of life in Gaza despite the cease-fire achieved through diplomatic efforts led by President Recep Tayyip Erdoğan and joint initiatives by regional countries.

“Israel’s ongoing occupation and attacks in Palestine threaten the security of the Palestinian people and regional stability,” Yilmaz said.

“At this stage, taking concrete steps that will pave the way for the reconstruction of Gaza, stop the genocide in occupied Palestinian territories, and sustain international efforts regardless of who comes to government in Israel is the primary responsibility of us all,” he said.

Yılmaz also noted that COMCEC is implementing the Al-Quds Program developed specifically for Palestinians, adding that work is advancing through 10 new projects launched this year alongside 28 completed projects.

Expressing satisfaction with steps taken toward ensuring Syria’s unity and territorial integrity in the new era that began following the fall of the Assad regime, Yılmaz said Türkiye strongly supports building a future in which the Syrian people live in peace, tranquility and prosperity.

In this regard, he noted that projects have started under the COMCEC Syria Program in the fields of halal standards, trade, vocational training, planning and strategy management, with findings shared during Sunday’s panel session. He pledged continued support for projects next year.

Turning to regional hostilities, Yilmaz warned that attacks targeting Iran through Israeli provocations and tensions in the Strait of Hormuz continue to threaten regional stability and global prosperity.

“Here, too, the key to the solution is clear: diplomacy and dialogue must never be abandoned,” he said, adding that Türkiye supports mediators’ efforts, contributes at the highest level to a negotiated solution and believes OIC nations must strongly support a peaceful resolution.

Turning to Yemen, Yılmaz condemned Houthi attacks against civilians and civilian infrastructure as unacceptable on any grounds, affirming that Türkiye will continue supporting its ally, Saudi Arabia.

He added that Türkiye will continue to work closely with international partners to ensure freedom of navigation in the Red Sea and the Bab al-Mandeb Strait.

Yılmaz voiced strong support for efforts to enhance stability in the Caucasus and the functionality of the Middle Corridor, particularly the ongoing peace and normalization process between Azerbaijan and Armenia, while emphasizing that relations with Africa remain an important pillar of Turkish foreign policy.

Africa relations

He announced that bilateral ties, deepened on the basis of mutual respect, equal partnership and win-win principles, will be further strengthened at the Fourth Türkiye-Africa Partnership Summit, scheduled to be held in Libya on Dec. 8-9, 2026.

Yılmaz expressed deep sadness over the conflict that has continued for 3.5 years in Sudan, emphasizing that Muslims cannot allow the humanitarian crisis facing the Sudanese people to be ignored. He pledged continued humanitarian aid and support for peace, territorial integrity, sovereignty and independence.

While significant progress has been made in Somalia over the past 15 years, Yilmaz stressed that Türkiye closely monitors steps aimed at destabilizing the region.

“We will continue to support the sovereignty and territorial integrity of Somalia against Israel’s illegitimate and unlawful decision to recognize Somaliland,” he said.

In North Africa, Yılmaz observed that developing bilateral relations contributes directly to regional peace, stability and prosperity, noting that Türkiye continues its efforts to ensure Libya’s stability and security through a dialogue process led and owned by Libyans.

He also pointed out that global food insecurity, exacerbated by climate change, geopolitical tensions and conflicts, has left more than 260 million people worldwide facing severe hunger.

Economic outlook

Addressing the global economic outlook, Yılmaz suggested that the world economy has shifted toward protectionism amid successive crises, with both economic growth and global trade projected to remain below historical averages at around 3% in 2026.

He said the resulting pressures have driven countries to reduce external dependence in critical sectors and strengthen domestic production capacity.

“In this period of increasing global uncertainties, one of the most important steps we must take as Islamic countries is to strengthen trade among ourselves,” the vice president said, pointing to the Trade Preferential System among the Member States of the OIC, implemented in 2022, as an essential instrument.

Welcoming ongoing work within the Trade Negotiating Committee to expand the system, he urged countries not to settle for tariff reductions alone but to focus on a comprehensive framework facilitating customs procedures, supporting digital trade and paving the way for trade in services and investment.

He called on countries that are not yet party to the preferential system to take the necessary steps swiftly and urged existing member states to actively contribute to resolving implementation issues.

Moreover, he emphasized that difficulties faced by small and medium-sized enterprises (SMEs) in accessing finance prevent OIC nations from fully realizing their vast potential.

Need for stronger cooperation

“There is a need to establish stronger cooperation between our banks, export credit agencies, development finance institutions, and relevant OIC bodies so that SMEs can benefit from foreign trade opportunities despite insufficient collateral, high financing costs, and a lack of information,” he said.

He urged ministers to adopt measures to make trade finance more accessible and affordable while calling on countries that have not yet joined the COMCEC SME Program to participate.

Underlining mutual recognition of halal certification as another key issue for trade, Yilmaz said he believes member states will provide the necessary support to operationalize the Islamic Forum for Halal Accreditation Bodies, founded in 2023, without further delay.

He encouraged the business community and professional organizations to make greater use of the OIC Arbitration Center and praised the B57+ platform for enhancing public-private dialogue and facilitating joint investments across the Islamic world.

Yılmaz noted that COMCEC working groups have held productive consultations, with Türkiye providing financial backing to 31 projects, raising the total number of supported projects to 209 since the program’s inception in 2013.

Turning to climate action, he said it is time to translate climate commitments into concrete steps, noting that Türkiye strives to remain at the forefront of combating climate impacts in vulnerable regions, including the Mediterranean Basin and OIC countries.

“We have planned COP31, whose presidency we will assume, with an understanding of climate justice, sustainable development, poverty reduction, and human-oriented transformation,” Yılmaz said.

“On this occasion, I would like to express once again that we expect the highest level of participation from Organization of Islamic Cooperation members at the COP31 Leaders Summit in Antalya on Nov. 11-12,” he added.

Global manufacturing activity remained relatively solid in October, but ​factories are beginning to show strain from rising energy costs while supply-chain disruptions squeezed margins, surveys showed on Monday.

The data ‌point to growing pain for export-led economies as prolonged conflict in the Middle East keeps fuel and food prices high, hitting consumption and business confidence.

S&P Global’s Eurozone Manufacturing Purchasing Managers’ Index (PMI) eased to 52.7 last month from 52.9 in September – which was the highest reading since May 2022 – but was above a preliminary estimate of ​52.4.

Readings above 50.0 indicate growth in activity.

This suggests manufacturers are holding up despite tariffs, conflicts and surging energy costs, ​but rising input prices add to pressure on the European Central Bank (ECB) to raise interest rates again.

“October’s final ⁠manufacturing PMIs confirmed the resilience of the eurozone’s industrial sector,” said Leo Barincou at Oxford Economics.

“Meanwhile, price pressures continue to intensify ​as robust demand meets constrained supply, with euro zone input prices rising at their fastest pace since May and output prices also increasing rapidly, ​reinforcing our view that inflationary pressures will remain elevated over the coming months.”

Preliminary data on Wednesday is expected to show inflation in the currency union nudged up to 4.0% in October, according to a Reuters poll, keeping pressure on the European Central Bank to raise interest rates.

The ECB left rates on hold last week as ​expected, but economists polled by Reuters last month said it would hike again in December.

Germany’s manufacturing industry expanded solidly in October, but France’s slipped back ​into contraction.

British manufacturers started the final quarter of 2026 with the strongest output growth in more than two years, although fast-rising costs may worry the Bank ‌of England (BoE), ⁠which looks set to raise interest rates this week.

Chip demand

Factory activity across Asia continued to expand in October, but growth slowed in China, Japan, South Korea and Taiwan, surveys showed, indicating the drag from the U.S.-Israeli war with Iran may be offsetting robust global demand for chips and AI-related goods.

“Strong chip and AI demand had masked soft spots in Asian and global economies. But that’s becoming hard to sustain with ​the Middle East war dragging on ​for so long, pushing up ⁠fuel and food prices,” said Toru Nishihama, chief emerging market economist at Dai-ichi Life Research Institute in Tokyo.

“High inflation is hurting Asian consumption. Intensifying price competition from China is also weighing on rival exporters like ​Japan and South Korea,” he said.

The RatingDog China General Manufacturing PMI, compiled by S&P Global, stood at 52.0 ​in October, just ⁠below September’s 52.1.

Japan’s PMI eased, marking the slowest expansion in seven months as output and new orders lost momentum, while South Korean factory activity grew at the slowest pace in eight months on weaker output and demand. Taiwan’s PMI continued to show solid growth in activity, albeit slowing down from ⁠the previous ​month.

India’s manufacturing growth slowed as domestic demand and hiring weakened, although a surge in ​export orders helped cushion the blow.

The International Monetary Fund (IMF) has projected that Asia’s economic growth will moderate next year, and it warned of heightening risks from the Iran ​war-induced energy shock and a potential correction in the AI boom.

The Daily Sabah Newsletter

Keep up to date with what’s happening in Turkey,
it’s region and the world.

SIGN ME UP

You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.