Independence has served central banks well: International Monetary Fund
Washington: Government respect for the independence of central banks has served them well in their mission, International Monetary Fund chief Christine Lagarde said. The IMF managing director’s remarks come as some central bankers around the world face increased pressure to bend to the objectives of political leaders and heads of state. US President Donald Trump in particular has attacked the Federal Reserve for raising interest rates last year, demanding that it cut rates and naming political loyalists as potential candidates for vacancy’s on the Fed’s board.
Speaking at the close of the IMF’s spring meetings with the World Bank, Lagarde said central bankers spoke of the need to accountable to the public as well as transparent in their decision making and to communicate their policies clearly. “All of them were saying we need these three components to be credible and in order to deliver on our mandate,” she said. Independence has served them well over the course of time and hopefully will continue to do so.”