Central bank independence at risk of erosion – ECB study

According to a European Central Bank (ECB) working paper, global central banks’ independence appears to be at risk due to political pressures, as cited by Bloomberg.

Key findings

“The feature of independence most affected in our sample of central banks has been institutional independence, with government attacks or interferences largely focusing on pressuring monetary policy to look into growth objectives.”

“The deterioration in the de facto independence of central banks is a concern, as the reasons that helped forge the pre-crisis consensuses on central bank independence to achieve price stability remain valid today.”