Populism Erodes Trust in Central Banks, Warns Bank of England Chief

The Bank of England's governor, Andrew Bailey, has sounded the alarm on the growing threat to central banks' independence from populist movements.

In a speech at the London School of Economics Trium Anniversary Conference, Mr. Bailey noted that there is 'growing scepticism towards public institutions generally.' He argued that this trend poses a challenge to central bank independence.

Mr. Bailey emphasized that central banks cannot take their legitimacy for granted and must remain accountable to elected representatives.

The governor stressed that 'central bank independence does not mean detachment from democracy' but rather insulation from short-term political pressures within a democratic framework.