Erdogan met with Mehmet Simsek, a former Minister of Economics and Deputy Prime Minister. He is well known by foreign investors and his appointment might signal a return to orthodox economic policy, which would boost investor confidence.
The decisions of the cabinet will be a determinant of the amount of confidence the foreign investors have in the Turkish markets.
In my opinion, because Erdogan has built a whole narrative around being an enemy of interest rates, he is not very likely to change course. And even if Turkey switches to an orthodox economic policy now a recession and soaring unemployment are the likely consequences.
I think in any case confidence of foreign investors in Turkey is likely to fall further, causing a decline in equities.
However, if the TCMB keeps cutting rates more Turkish investors will buy stocks as a hedge against inflation, and the rate cuts might keep the BIST high.
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