Turkey’s President Recep Tayyip Erdogan on May 24 returned to one of his well-worn favourite themes, renewing his attack on high interest rates.

“I clearly say this: I see high interest rates as a tool of exploitation,” said Erdogan at the Ankara general assembly of the Union of Chambers and Commodity Exchanges (TOBB).

Erdogan, who maintains the unconventional view that high interest rates actually cause inflation, has long called on banks to lower the cost of their lending to boost domestic demand and investment.

Some analysts interpret Erdogan’s comments on interest rates as an attempt at placing political pressure on the Turkish central bank. It is struggling to get inflation under control, but the government has prioritised spurring growth since last summer when the failed coup attempt hit the economy.

The government has announced a number of measures to boost growth. For instance, it cut taxes on white goods and furniture and set up a sovereign wealth fund to finance mega infrastructure projects.

Banks have ramped up their lending since the government pledged to make TRY250bn available to businesses under the credit guarantee fund (CGF) scheme.

Introduced government measures are apparently paying off: the country’s GDP grew by 3.5% y/y in the final quarter of 2016, following the Q3 contraction of 1.3% y/y.

Deputy PM Nurettin Canikli recently announced a plan to allow commercial lenders to securitise and sell all of their $515bn of outstanding loans to investors.

Banking sector loan growth may exceed 15%, lower than the expectation of some 20%, Is Bankasi chief executive Adnan Bali said on May 24, Reuters reported.

Investors have now shifted their focus to a possible cabinet reshuffle. They are assessing whether Deputy PM Mehmet Simsek, known for his work on economic reform and reformulating fiscal policy, will keep his post and what kind of economic management team will emerge out of any reshuffle. Erdogan has rejected speculation that there will be a major cabinet overhaul, but commentators think that some changes can be expected with Erdogan having regained the leadership of the ruling AKP earlier this month.