Türkiye: New Central Bank Chief Pledges to Maintain Tight Policy

A man walks amid apartment buildings of the Maltepe district, Istanbul, Turkey, 03 April 2023. (Issued 05 February 2024)  EPA/ERDEM SAHIN
A man walks amid apartment buildings of the Maltepe district, Istanbul, Turkey, 03 April 2023. (Issued 05 February 2024) EPA/ERDEM SAHIN
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Türkiye: New Central Bank Chief Pledges to Maintain Tight Policy

A man walks amid apartment buildings of the Maltepe district, Istanbul, Turkey, 03 April 2023. (Issued 05 February 2024)  EPA/ERDEM SAHIN
A man walks amid apartment buildings of the Maltepe district, Istanbul, Turkey, 03 April 2023. (Issued 05 February 2024) EPA/ERDEM SAHIN

The new head of Türkiye's central bank said on Thursday the bank will maintain its tight policy stance until inflation drops to target, as it held its year-end consumer price forecast at 36% despite some expectations it would need to rise.
Presenting a quarterly inflation report in Ankara, Fatih Karahan, appointed to the post less than a week ago, said the central bank will reassess its current policy level if there is a significant deterioration in the outlook.
"We are determined to maintain the necessary monetary tightness until inflation falls to levels consistent with our target," said Karahan, who was named governor on Saturday, having been a deputy governor since July.
Turkey's inflation rate climbed to an annual 64.9% last month, having risen 6.7% on a monthly basis.
On Thursday the bank held its inflation forecasts out to end-2026, when it is seen falling to 9%. "Rapid disinflation" will begin after May of this year, Reuters quoted Karahan as saying.
The presentation came after the surprise resignation last Friday of former bank governor Hafize Gaye Erkan, who cited the need to protect her family from what she called a media smear campaign.
The first woman to run the bank, Erkan had aggressively hiked interest rates to 45% from 8.5% since June to cool inflation, orchestrating a dramatic U-turn away from years of easy money in the face of soaring prices under President Recep Tayyip Erdogan.
Karahan, a former Federal Reserve Bank of New York economist, was one of a few deputies on Türkiye's monetary policy committee who played an important role designing the current tightening cycle.
His first in-person comments as chief reinforced the expectation he will remain hawkish.
"Economic indicators since the previous inflation report period confirm that the monetary policy is on the right track," he said. "We will decisively continue our work to ensure disinflation."



Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
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Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)

flynas, Saudi Arabia’s leading low-cost carrier, has signed a Memorandum of Understanding (MoU) with Airbus for 75 A320neo family aircraft and 15 A330-900. This strategic agreement will expand the airline's capacity, range and enhance its overall fleet capabilities.
Signed during Farnborough International Airshow in the presence of President of the General Authority of Civil Aviation (GACA) of Saudi Arabia, Abdulaziz bin Abdullah Al-Duailej, Chairman of the Board of NAS Holding Ayed Al Jeaid, flynas Chief Executive Officer & Managing Director Bandar Almohanna, and Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer, Airbus said on its website.
The new aircraft will join the carrier’s all Airbus fleet serving international, domestic and regional routes. The new A330-900 aircraft will boast a two-class configuration, accommodating up to 400 passengers.
"We are excited to further strengthen our long-standing partnership with Airbus," said Bander Almohanna, CEO and Managing Director of flynas. "The A320neo Family provides exceptional operational performance and environmental benefits, allowing us to offer unique, low-cost travel experiences. Additionally, the A330neowill enhance our long-haul capabilities with its advanced technology and efficiency while supporting our growth plans and Saudi Arabia’s pilgrim program."
Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer said, "We are delighted to expand our partnership with flynas through this significant milestone for both A320neo and A330-900 aircraft. The A330neo will allow flynas to further grow into widebody markets by building on the A320, benefiting from Airbus’ unique commonality. Both aircraft types offer flynas the perfect versatility and economics to expand into new markets while offering their passengers the latest cabin experience and comfort. We look forward to continuing our successful collaboration with flynas as they embark on this exciting new chapter."
The addition of the A330-900 aircraft will support flynas' ambitious growth plans. The airline anticipates significant operational efficiency gains by combining the new widebody aircraft with its existing A320neo fleet. The A330-900 offers increased capacity and range at unrivaled seat costs, ensuring flynas can compete effectively in the growing regional market, a key focus area for the airline.
The A330neo delivers unbeatable operating economics, powered by the latest-generation Rolls-Royce Trent 7000 engines, featuring new wings and a range of aerodynamic innovations resulting in a 25 percent reduction in fuel consumption and CO₂ emissions compared to previous generation competitor aircraft. The A330neo is capable of flying 8,150 nm / 15,094 km non-stop, providing ultimate comfort with more passenger space, a new lighting system, latest in-flight entertainment systems and full connectivity throughout the cabin.
As with all Airbus aircraft, the A330 family is already able to operate with up to 50% Sustainable Aviation Fuel (SAF). The manufacturer is targeting to have its aircraft up to 100% SAF capable by 2030.