Chancellor Merz Warns Against Political Pressure on Central Banks

German Chancellor Friedrich Merz has voiced concerns over the increasing political influence on central banks globally, emphasizing the significance of maintaining their independence. During his visit to Bengaluru, Merz reiterated the importance of central bank autonomy, highlighting its vital role in Europe's financial stability.

German Chancellor Friedrich Merz has sounded an alarm over the rising political pressures faced by central banks worldwide. Speaking in Bengaluru, Merz underlined the crucial need for these financial institutions to maintain their independence, a principle long-held in Europe and particularly in Germany.

Merz emphasized that political influence on central banks has been a growing concern, not just in recent weeks, but over a prolonged period. He warned that this could potentially undermine the stability and effectiveness of these key economic players if not addressed.

Reaffirming Europe's commitment to central bank independence, Merz called for continued vigilance and effort to uphold this standard, vital for ensuring sound economic governance and stability across the globe.

(With inputs from agencies.)