Regulators worldwide are expressing growing concern over increasing pressure on central banks! According to ECB President Christine Lagarde, the independence of central banks is being questioned in some countries. She believes that greater political influence could undermine banks' ability to control inflation.

Although formal independence remains intact, de facto freedom is under pressure, Lagarde warned."While recent research suggests that de jure central bank independence has never been more prevalent than it is today, there is no doubt that the de facto independence of central banks is being called into question in several parts of the world," she said.

The ECB chief also pointed out that persistent political pressure creates a "vicious circle" that amplifies volatility in currency exchange rates, bond yields, and risk premiums. This, in turn, makes it harder to fight inflation. Moreover, this situation could undermine public confidence and exacerbate economic instability.

Jean Boivin, head of the BlackRock Investment Institute, added that central bank independence is not a given. According to him, maintaining regulatory freedom is becoming increasingly difficult, especially "in a situation where we have to deal with inflation at such a high debt level."

Recent comments by US President Donald Trump, calling on the Federal Reserve to lower borrowing costs, highlight the growing political interference in monetary policy. While his remarks may seem rhetorical, they underscore how central bank independence is increasingly being challenged.