Central Banks Face Independence Threat from Financing Deficits

The Bank of England's chief economist, Huw Pill, has expressed concern that central banks are being pressured to finance huge fiscal deficits. According to Pill, this is the 'defining challenge' currently facing central banks.

Pill, who sits on the BOE's Monetary Policy Committee, made his comments on Friday, suggesting that the biggest threat to central banks' independence comes from governments pushing them to fund large budget shortfalls.