Latest news with #UStariffs
CNA
4 days ago
- Business
- CNA
Thai central bank holds rates steady, eyes tariffs, political tensions
BANGKOK :Thailand's central bank left its key interest rate unchanged on Wednesday, as expected, holding steady after two consecutive cuts as it seeks to preserve limited policy space amid trade uncertainty and renewed domestic political turmoil. The Bank of Thailand's monetary policy committee voted 6 to 1 to hold the one-day repurchase rate steady at 1.75 per cent, the lowest in two years. The BOT had cut the rate by 25 basis points at reviews in February and April. The BOT said economic growth was stronger than expected in the first half of the year, in part because of frontloading of export orders to beat U.S. tariffs, but said the outlook was uncertain and it was ready to adjust rates as needed."The Thai economy is projected to slow down going forward, as a result of increasing risks to merchandise exports stemming from U.S. trade policies as well as geopolitics and domestic factors," it said in a statement. The country faces a 36 per cent U.S. tariff on its exports, a key driver of growth, if it fails to negotiate a reduction before a moratorium expires in July. A tariff of 10 per cent has been set for most nations while the moratorium is in place. The BOT said assuming Thailand negotiated an 18 per cent tariff and the rate was 10 per cent for other countries, then growth would be 2.3 per cent this year and 1.7 per cent in 2026. The baht was largely unchanged against the U.S. dollar after the decision to hold rates steady, which had been expected by 21 of 33 economists in a Reuters poll. Thailand's economy has struggled with weak consumption, soaring household debt, slowing tourism, trade uncertainty and potentially steep U.S. tariffs. Adding to the challenges is a new round of political turmoil that could bring down Prime Minister Paetongtarn Shinawatra or the coalition government led by her Pheu Thai party.
Zawya
5 days ago
- Business
- Zawya
African leaders urge United States (U.S.) to embrace investment-driven partnerships and review tariffs
African leaders have called on Monday for an urgent review of U.S. tariffs on African exports, urging a shift towards transformative partnerships and investment in Africa's economic potential. Addressing more than 2,000 government and business leaders, and other delegates at the U.S.-Africa business summit in the capital Luanda, Angolan President João Lourenço said: 'It is time to replace the logic of aid with the logic of investment and trade.' He urged U.S. companies to diversify beyond traditional oil and mineral extraction and invest in sectors such as automotive manufacturing, shipbuilding, tourism, cement production, and steel production. African Union Commission Chairperson Mahmoud Ali Youssouf, added, 'We're not seeking aid, but building co-created solutions.' He called for the removal of punitive tariffs and visa restrictions, noting that Africa's 1.3 billion people and abundant resources remain among the world's most significant untapped economic opportunities. 'This should not just be a summit, but a call to action. Together, let's walk the pathways to prosperity—with unity, purpose, and Agenda 2063 as our guide,' he told the summit. In his remarks, African Development Bank Group President Dr. Akinwumi Adesina said, 'We should review the high tariffs on African countries. What is needed is more trade between Africa and the U.S., not less.' African Continental Free Trade Area (AfCFTA) Secretary General Wamkele Mene reinforced Africa's integration agenda, highlighting the importance of open regional markets. 'The undertaking of the AfCFTA is an ambitious one—It has to be ambitious,' Mene said. He emphasized that the success of AfCFTA is essential to scale investment, reduce fragmentation, and accelerate industrial development across the continent. From rhetoric to action: Building real partnerships The central message was clear: the era of aid dependency is over, and the time for transformative investment partnerships has arrived. The leaders called for bold, strategic investments to unlock Africa's trillion-dollar potential. Responding to the call for deeper engagement, U.S. officials acknowledged Africa's growing economic importance and the need to reset perceptions. Senior State Department Bureau Official Troy Fitrell said, 'There are business leaders in the U.S. who need to understand the opportunities that lie in doing business with Africa. Our mission going forward will be to find them—and bring them in.' The U.S.-Africa Business Summit promotes economic cooperation and investment between the United States and Africa with a focus on fostering sustainable and inclusive economic growth. By bringing together leaders from government, business, and civil society, the summit provides a platform to discuss key issues and opportunities in the U.S.–Africa relations, ultimately driving growth and development on both sides. Adesina pointed to the Lobito corridor as a concrete example of strategic investment already underway. 'That is why the African Development Bank is a key strategic partner with the U.S., Angola, and Zambia on the development of the Lobito corridor,' he said. This critical corridor will link the vast areas of Zambia and the Democratic Republic of the Congo to the port of Angola, improving mineral supplies, unlocking agricultural potential, and creating jobs. The African Development Fund, the soft loan arm of the Bank Group, will be providing $500 million in support of the development of the Lobito Corridor. Additionally, the African Development Bank will provide $1 billion over five years for complementary investments around the corridor, including agricultural value chains, roads, and energy infrastructure. Act on the data, not perceptions The Bank President went further: 'As we build transport corridors, let us also build strategic partnership corridors. Strategic partnerships that prioritize capital investments in infrastructure, agriculture, minerals industrialization, and development of digital infrastructure, as well as capital markets.' He charged U.S. investors: 'Act on the data, not perceptions. Think Africa. Think opportunities. Think competition. From the U.S. International Development Finance Corporation to the Export-Import Bank of the United States, as well as institutional investors and capital allocations, invest in Africa. Let's make America and Africa great again.' Corporate Council on Africa President Florie Liser challenged summit delegates to embrace true partnership: 'Beyond deals, let's strive for lasting transformation.' As part of the opening ceremony of the Summit, the Corporate Council on Africa honored Dr. Adesina with its Distinguished Economic Leadership Award, recognizing his significant contributions to Africa's transformation. Council Deputy Chairman, Mr. Jean Raymond Boulle, conferred the award, describing how the African Development Bank has impacted millions of Africans under Adesina's leadership, while transforming the Bank to a world-class institution and a partner of choice. Akinwumi Adesina, who will complete his second and final five-year term as President of the African Development Bank Group on 31 August, has led for the past decade transformative projects across Africa under the Bank's five strategic priorities, the 'High 5s'. They have positively impacted the lives of more than 565 million people on the continent. Speaking at a high-level event hosted by Africa50, a pioneering infrastructure investment platform dedicated to accelerating project development and delivery across Africa, Adesina emphasized the urgent need to scale local financing solutions—especially in local currencies—to mitigate forex volatility, reduce risk mismatches, and enhance the bankability and stability of infrastructure projects for global investors. The event, titled 'Unlocking Capital for Africa's Infrastructure through Innovative Finance,' featured a high-level panel discussion on asset recycling, moderated by CNN's Richard Quest, with insights from Alain Ebobissé, CEO of Africa50; Brook Taye, Director General of Ethiopia Investment Holdings; and Armando Manuel, Chairman of Fundo Soberano de Angola. Together, they explored how innovative models, such as asset recycling, can unlock capital and accelerate infrastructure development across Africa. Alain Ebobissé stated that the asset recycling model has been successfully implemented in many countries worldwide. 'In implementing this initiative in Africa, we are pursuing three objectives. First, monetizing assets—ensuring that, instead of owning only a bridge, you receive cash that you can reinvest in your assets. Second, improving the efficiency of the asset by bringing in first-class operators to help us manage those assets. Third, and most importantly, we aim to bring pension funds and other investors interested in cash flow-generating assets to finance these projects,' Ebobissé explained. Adesina said over the past decade, the African Development Bank Group has invested over $55 billion in infrastructure, including regional projects, making the Bank the largest financier of infrastructure in Africa. The African Development Bank established Africa50 as a private equity infrastructure platform, comprising a project development company and a project finance company, to support the development of infrastructure with market-rate returns. Africa's missing share of a $2.9 trillion opportunity The Bank President informed the audience that, in the past eight years since its establishment, Africa50 has invested in a portfolio of infrastructure projects worth over $8 billion. 'But more is needed, especially from private sector investors,' stated Adesina. 'Africa should be well positioned to attract some of the $2.9 trillion global green bonds. However, the continent represents less than 1% of global green bond issuance. Because most of Africa's infrastructure is yet to be built, this represents a huge opportunity for green bond issuances to build green infrastructure, reduce carbon emissions, and build climate resilience.' The African Development Bank launched the Alliance for Green Infrastructure in Africa (AGIA) to mobilize $500 million for project preparation and development, as well as $10 billion for green infrastructure investments. Africa50 is the General Partner for the AGIA-Project Development Fund, with several Limited Partners, including the G7 countries. To mitigate risks at scale across Africa, the African Development Bank is establishing the Africa Risk Mitigation Agency, which will consolidate all banks' guarantee instruments into a single entity. The entity will support guarantees for equity risk, climate risk, refinancing risk, and political risk. He emphasized that Africa50 is also pioneering asset recycling, enabling governments to recover their investment in infrastructure by transferring brownfield assets to the private sector. This can help to reduce debt burdens and provide liquidity for governments. 'The Senegambia bridge, which the African Development Bank financed with $104 million, was the first to be used for the asset recycling program. It worked successfully, as Gambia received $104 million it spent back through Africa50,' he added. 'Following this, several asset recycling initiatives are being proposed for many infrastructure projects financed for governments by the African Development Bank Group.' The renewed momentum for U.S.-Africa business partnerships received strong political backing, with the participation of seven Heads of State, several Prime Ministers, and leaders of key regional organizations. Attending dignitaries included Presidents Denis Sassou Nguesso (Republic of the Congo), Faustin-Archange Touadéra (Central African Republic), Félix Antoine Tshisekedi Tshilombo (Democratic Republic of the Congo), Taye Aske Selassie (Ethiopia), Duma Gideon Boko (Botswana), Netumbo Nandi-Ndaitwah (Namibia), and Brice Clotaire Oligui Nguema (Gabon); Prime Ministers Gervais Ndirakobuca (Burundi), Robert Beugré Mambé (Côte d'Ivoire), Russell Mmiso Dlamini (Eswatini), Manuel Osa Nsue Nsua (Equatorial Guinea), Christian Louis Ntsay (Madagascar), and Deputy Prime Minister Nthomeng Justina Majara (Lesotho); as well as Mahamoud Ali Youssouf, Chairperson of the African Union Commission, Ambassador Gilberto Da Piedade Verissimo, Chairperson of the Economic Community of Central African States, and Elias M. Magosi, Executive Secretary of the Southern African Development Community. Distributed by APO Group on behalf of African Development Bank Group (AfDB). About the African Development Bank Group: The African Development Bank Group is Africa's premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information:
Yahoo
19-06-2025
- Business
- Yahoo
Swiss cut key interest rate by a quarter percentage point, putting its target now at 0%
GENEVA (AP) — Switzerland's central bank said Thursday it has reduced its target interest rate by a quarter of a percentage point, adding that inflationary pressures have eased. The Swiss National Bank says its policy rate would drop to zero from 0.25%, after noting that nearly flat inflation nosed into negative territory in May compared to February. Many Western economic powers have been grappling with monetary policy at a time when prices have fallen in many places but political instability — particularly when it comes to conflicts in the oil-rich Middle East — and U.S. tariffs have unsettled financial markets in recent months. The SNB attributed the drop in inflation in Switzerland primarily to declining prices in the tourism and oil sectors. It's now projecting annual inflation at 0.2% this year, before edging up to a half-point next year and 0.7% in 2027, based on the scenario that its target interest rate will remain at zero over that span. 'In its baseline scenario, the SNB anticipates that growth in the global economy will weaken over the coming quarters,' it said in a statement. 'Inflation in the U.S. is likely to rise over the coming quarters. In Europe, by contrast, a further decrease in inflationary pressure is to be expected.' Switzerland enjoyed 'strong' economic growth in the first quarter, the bank said, largely because exports to the United States were brought forward as companies sought to anticipate future U.S. tariffs that could raise price of foreign goods for American consumers. The U.S. Federal Reserve kept its key rate unchanged Wednesday as it waits for additional information on how tariffs and other potential disruptions will affect the economy this year. U.S. President Donald Trump has pressed the Fed to lower interest rates, hoping it will boost the U.S. economy. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
19-06-2025
- Business
- Associated Press
Swiss cut key interest rate by a quarter percentage point, putting its target now at 0%
GENEVA (AP) — Switzerland's central bank said Thursday it has reduced its target interest rate by a quarter of a percentage point, adding that inflationary pressures have eased. The Swiss National Bank says its policy rate would drop to zero from 0.25%, after noting that nearly flat inflation nosed into negative territory in May compared to February. Many Western economic powers have been grappling with monetary policy at a time when prices have fallen in many places but political instability — particularly when it comes to conflicts in the oil-rich Middle East — and U.S. tariffs have unsettled financial markets in recent months. The SNB attributed the drop in inflation in Switzerland primarily to declining prices in the tourism and oil sectors. It's now projecting annual inflation at 0.2% this year, before edging up to a half-point next year and 0.7% in 2027, based on the scenario that its target interest rate will remain at zero over that span. 'In its baseline scenario, the SNB anticipates that growth in the global economy will weaken over the coming quarters,' it said in a statement. 'Inflation in the U.S. is likely to rise over the coming quarters. In Europe, by contrast, a further decrease in inflationary pressure is to be expected.' Switzerland enjoyed 'strong' economic growth in the first quarter, the bank said, largely because exports to the United States were brought forward as companies sought to anticipate future U.S. tariffs that could raise price of foreign goods for American consumers. The U.S. Federal Reserve kept its key rate unchanged Wednesday as it waits for additional information on how tariffs and other potential disruptions will affect the economy this year. U.S. President Donald Trump has pressed the Fed to lower interest rates, hoping it will boost the U.S. economy.
Reuters
18-06-2025
- Business
- Reuters
Singapore MAS survey shows economists cut GDP, inflation forecasts and see more easing
SINGAPORE, June 18 (Reuters) - Economists have lowered their forecasts for Singapore's growth and inflation this year and are expecting a further easing of monetary policy next month, a survey of forecasters by the Monetary Authority of Singapore showed on Wednesday. Geopolitical tensions were seen as the biggest downside risks for the economy, while milder-than-expected or an easing of trade tensions was the most cited upside risk, the responses from 20 economists for the June quarter survey found. The median forecast for growth was cut to 1.7% from 2.6% in the March quarter survey. In April, the government lowered its forecast for 2025 growth to 0% to 2%, citing the impact of U.S. tariffs. Almost three in five respondents expect the central bank to further ease monetary policy settings at a review next month, the survey found. The MAS loosened monetary policy in January and April on the back of expected slower inflation and growth this year. The median forecasts for headline inflation and core inflation for 2025 were lowered to 0.9% and 0.8% respectively, the survey showed. At its April policy review, the MAS forecast lowered its forecast for core inflation to 0.5% to 1.5% in 2025. In March, the annual core inflation rate was 0.5%, the lowest rate in more than three years. The survey was sent out to respondents on May 22, the same day final first-quarter GDP data was released.
