President Erdogan must have felt the need to make a reminder with his statement on his return to Azerbaijan, "We accepted Mehmet Şimşek's taking a step with the Central Bank, we said good luck", because he says:
“Some friends should not fall into the delusion that the President is going to make a serious change in his interest policy. I am the same here.”
After these words, he states that they have done low interest low inflation work together with Mehmet Şimşek in the past and says that they will succeed again!
President Erdogan's statement is very important! Because it contains some clues about what may happen in the economic world in the coming days.
We understand the following from the statement:
- Low interest, low inflation theory is still valid!
- But Mehmet Şimşek is given a chance with his determination to reduce inflation to single digits.
- The Ministry of Treasury and Finance is allowed to take steps together with the Central Bank!
So it will take a while!
If the steps that Mehmet Şimşek will take together with the Central Bank yield positive results and the inflation drops to single digits, what would be great!
It will be said that we succeeded in the past then, and now we are repeating the same success.
What if inflation doesn't drop to single digits?
That's when my rose burned flax halva!
Under these circumstances, it is not possible to predict who will accuse whom and how, in other words, who will say what.
But you can hear the words "we gave them another chance but they didn't succeed"!
What we understand from the statement is that Mehmet Şimşek and the team he will work with will be given a while and see if they are successful during this time!
President Erdoğan accepts Mehmet Şimşek and his team to take a step with the Central Bank and says good luck, but he clearly declares that there is no change in his views.
He underlines that there is no change in his views by saying "I am the same here".
This means that the fact that Mehmet Şimşek and his team were given another chance certainly does not mean that President Erdoğan made a change in his interest policy!
It is as if Şimşek is politely reminded that he needs to watch his steps with the warning "I am in the same situation".