Central bank independence in an era of financial instability

Andrew Bailey, governor of the Bank of England, joins OMFIF chairman David Marsh to discuss the evolving role of central bank independence amid persistent economic shocks, heightened geopolitical uncertainty and growing financial stability risks. They consider how central banks can preserve credibility and public trust while navigating an increasingly complex policy environment.

The discussion examines the relationship between monetary policy and financial stability, the challenges of maintaining operational independence beyond inflation targeting, and the implications of political scrutiny, technological changes and market fragmentation for the future of central banking. It also considers how central banks should respond as their mandates increasingly intersect with wider public policy objectives.