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Turkey Central Bank Head Faces 2 Years In Jail For Not Lowering Interest Rates

Having questioned the need for an independent central bank a week ago, saying that if they can’t cope with their duties, they will be held accountable, Turkey's President Recep Tayyip Erdogan has filed a lawsuit against the head of Turkey’s central bank, Erdem Basci. As Trend reports, the prosecutor accuses Basci of serious material damage inflicted to Turkey’s citizens as a result of an erroneous interest rate policy of the central bank.

As Trend reports,

A prosecutor of a court in Ankara, Serif Aydin, filed a lawsuit against the head of Turkey’s central bank, Erdem Basci.

 

Turkish news channel Haber7 reported that the prosecutor accuses Basci of serious material damage inflicted to Turkey’s citizens as a result of an erroneous interest rate policy of the central bank.

 

The prosecutor said that, in case of a trial, the Turkish central bank’s head can be imprisoned for up to two years.

 

On Feb. 10, Turkey’s President Recep Tayyip Erdogan criticized Basci’s work, saying that if the central bank’s head can’t cope with his duties, he will be held accountable.

 

“Despite the fact that the government has repeatedly demanded that the central bank lowers the main interest rates, the regulator hasn’t until today responded to this demand,” said Erdogan.

 

He said it is the inflation, which is due to high interest rates, but not the other way around.

 

However, Turkey’s deputy prime minister for economic affairs, Ali Babacan, said the central bank pursues right monetary policy.

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One wonders if that gives any ambitious American prosecutors any ideas?