Delivering on central bank mandates in a changing world
Speech by Mr Pablo Hernández de Cos, General Manager of the BIS, at the Bank of Mexico 100th Anniversary Conference, Mexico City, Mexico, 26 August 2025.
The foundations that enable central banks to maintain price stability and, in particular, preserve trust in money, are formed by three key institutional pillars: a clear price stability mandate, independence and accountability. A clear price stability mandate specifies that monetary policy should protect the value of money. Independence allows central banks to take monetary policy decisions based on economic considerations in the long-term public interest, free from short-term political interference. Accountability is a key counterpart to independence and underpins the legitimacy of central bank policies. These three institutional pillars have been key for central banks worldwide to deliver price stability and to build strong inflation-fighting credibility.
