Fulfilling central bank mandates in times of high uncertainty

Speech by Mr Alexandre Tombini, BIS Chief Representative for the Americas, at the Regional Central Bank Governance Forum, 4 April 2025.

Central bank mandates have evolved over the past two decades both globally and in Latin America, especially in terms of the interaction of monetary and financial stability mandates. To effectively fulfil the mandates, central banks need to have an adequate set of tools matching their objective. When a central bank faces rising domestic political pressures, it is all the more important to preserve its independence. When geopolitical or trade tensions affect the macroeconomy, the central bank would need to work in close cooperation with other financial authorities to come up with an effective policy mix. Finally, in times of global fragmentation, central banks would need to make further efforts to increase dialogue among themselves.