In his first speech since taking over, the former European Central Bank official stressed that independence also “shields central banks from pressures to use monetary policy to finance government budget deficits.”
Central-bank independence is crucial for keeping inflation in check and contributing to people’s wellbeing, according to the new head of the Bank for International Settlements.
Autonomy allows policymakers to take decisions “based on economic considerations in the long-term public interest, free from short-term political interference,” General Manager Pablo Hernandez de Cos said Tuesday in Mexico City.
