You are here: Home » International » News » Finance
Business Standard

IMF chief backs independence as central banks face political pressure

Christine Lagarde'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

AFP | PTI  |  Washington 

Christine Lagarde
International Monetary Fund Managing Director Christine Lagarde | Photo: Reuters

Government respect for the independence of central banks has served them well in their mission, Monetary Fund Lagarde said Saturday.

The 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 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 be 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," she added. 

First Published: Sun, April 14 2019. 03:55 IST
RECOMMENDED FOR YOU