Emphasis Placed on Credibility for Central Banks
The General Manager of the Bank for International Settlements emphasized at the forum in Istanbul that central banks must rely on principles of credibility and soundness.
Bank for International Settlements General Manager Pablo Hernandez de Cos stated at the Istanbul Economy Forum that central banks must maintain their credibility in the face of growing uncertainties.
Istanbul Economy Forum Takes Place
Important evaluations were made within the scope of the Istanbul Economy Forum, organized by the Central Bank of the Republic of Turkey at the Istanbul Financial Center.
During the program, questions from CBRT Governor Fatih Karahan were answered by Bank for International Settlements (BIS) General Manager Pablo Hernandez de Cos.
Core Principles Outlined
Hernandez de Cos stated that the three guiding principles for central banks are soundness, resilience, and realism.
It was stated that considering the current geopolitical environment, these principles provide an effective framework for protecting price stability.
The Importance of Credibility
Attention was drawn to the critical importance of credibility in the face of increasing uncertainties and negative supply shocks driving up inflation.
It was conveyed that credibility is built upon a clear mandate, an inflation target, central bank independence, and accountability.
Price and Financial Stability
Touching upon the close relationship between price stability and financial stability, it was emphasized that financial stability is a prerequisite for price stability.