Christine Lagarde Foto : Liis Treimann
With such a statement the ECB head made on Thursday in Cambodia at a meeting of central bank governors of francophone countries, writes The Wall Street Journal.
According to Lagarde, the ability of central banks to make decisions that may be unpopular with governments is facing growing pressure amid a series of economic shocks. She noted that the current situation is both boosting inflation and slowing economic growth, increasing the political sensitivity of monetary policy.
The head of the ECB emphasized that the protection of the independence of regulators is impossible without public confidence and is not solely the task of the central banks themselves.
Lagarde’s statement came amid ongoing discussions in the US about the role of the Federal Reserve, interest rates and political influence on monetary policy. For global markets, the issue of independence of major central banks remains a key factor of confidence in the financial system and inflation expectations.
