Opinion
This is why central banks need more scrutiny
June was a tough month for the masters of monetary policy. And in the face of a stubborn trilemma of challenges, they need help to restore credibility.
Mohamed El-ErianGlobal financial commentatorJune was an extraordinary month for the central banking world, one that could potentially be remembered as a defining moment for the credibility of central banking in advanced countries. It is likely to be significant for the political autonomy of individual central banks and the prospects for inflation, growth and inequality.
Rarely do we witness such a combination of events within a few days. The Bank of England, a major central bank, surprised markets by increasing its interest rates for the 13th consecutive time by an unexpectedly large 0.50 percentage points. The European Central Bank raised rates and signalled more to come despite the eurozone economy shrinking and cautionary signals from leading indicators.
Financial Times
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