IMF Director Kristalina Georgieva emphasized the importance of the independence of central bank leaders, as the risks of political interference in their work and personnel appointments are increasing. This is stated in the blog on the Fund's website.
►Subscribe to the Ministry of Finance page on Facebook: main financial news
Central bank leaders are now facing pressure to reduce interest rates rates, even if it could be dangerous, Georgieva noted.
“Independent central bankers have successfully managed the COVID-19 pandemic by employing flexible monetary policies. IMF research shows that central banks with a high level of independence are better at controlling inflation,” writes the IMF chief.
She also added that central bank independence is the key to price stability, and price stability is the key to long-term economic growth.
Georgieva stresses that independence and strong governance mean central bankers must have control over budgets and staff. “They cannot be fired for their political opinions or actions within the scope of their legal authority. At the same time, they must be accountable and transparent in their work.”