Independence has served central banks well: IMF’s Lagarde, Latest Business News - The New Paper

Independence has served central banks well: IMF’s Lagarde

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WASHINGTON: Government respect for the independence of central banks has served them well in their mission, International Monetary Fund (IMF) managing director Christine Lagarde said on Saturday.

Her 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 vacancies on the Fed's board.

Speaking at the close of the IMF's spring meetings with the World Bank, Ms 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. - AFP