Central bank independence refers to the autonomy granted to a monetary authority in making decisions within its statutory mandate. Its purpose is to shield monetary policy from temporary electoral or governmental interests while preserving accountability under the law. In the euro area, this safeguard is set out in Article 130 of the Treaty on the Functioning of the European Union, which limits direction or pressure from political bodies.
Passende Formel
Source: European Central Bank (ECB) (source). This glossary entry is an independently worded adaptation of the cited information.