Opposition party to file criminal complaint against Turkish Central Bank governor

Turkey’s opposition Homeland Party (MP) has announced that it will file a criminal complaint against Turkish Central Bank Governor Şahap Kavcıoğlu and members of the Monetary Policy Committee (PPK) for neglect of duty due to the meltdown of the Turkish lira, the Birgün daily reported on Friday.

The central bank on Thursday cut its policy rate by 100 basis points to 15 percent, in line with President Recep Tayyip Erdoğan’s call a day earlier and despite the plunge of the Turkish lira.

The bank, which shocked the market when it first cut interest rates in September, causing the lira to sink all-time lows against the dollar, also hinted at more easing despite inflation running near 20 percent.

The MP holds Governor Kavcıoğlu and PPK members responsible for the slide and the accompanying impoverishment of the country.

“We will file a criminal complaint against the Central Bank Governor and PPK members for failing to perform their duties under the law, resulting in the depreciation of Turkish lira and impoverishment of the nation and country. The homeland is not without owners,” the party tweeted on its official Twitter account.

Genel Başkanımız Muharrem İnce:
“Memleket sahipsiz değildir!” pic.twitter.com/ZTvyLfIfNd

— Memleket Partisi (@MemleketimParti) November 18, 2021

In February Erdoğan replaced a market-friendly central bank governor who raised rates sharply during his four-month term with party loyalist Kavcıoğlu.

Turkey’s nominally independent bank has bowed to incessant pressure from Erdoğan to lower the cost of doing business in order to stimulate growth.

Erdoğan is widely criticized for subscribing to the unorthodox belief that high interest rates cause high inflation instead of slowing it down.

The MP is led by Muharrem İnce, a former Republican People’s Party lawmaker who ran against Erdoğan in the presidential election of 2018.