ECB’s Nagel: Independence, Reliable Statistics and Clear Mandate Are Essential to Stability

21 October 2025

By David Barwick – FRANKFURT (Econostream) – Bundesbank President Joachim Nagel on Tuesday said that credibility in monetary policy depends on central bank independence, reliable statistics and a clear focus on the price stability mandate.

Speaking at the Foreign Policy Association in New York, Nagel said monetary policy decisions must rest on economic analysis and sound data rather than political convenience. Credibility was the cornerstone of public trust, and when it eroded, the foundations of stability began to crack, he said.

He warned that history showed the damage caused when independence was compromised, citing the United States during the Great Inflation between 1965 and 1982 and Turkey’s recent experience of high inflation following politically driven rate cuts.

Nagel expressed concern about growing political criticism of central banks that he said risked undermining institutions designed to serve the public interest and long-term economic stability.

Turning to statistics, he said that reliable data were the backbone of sound monetary policy. Accuracy, transparency and impartiality were the core ingredients of good statistics, he said, and independence was essential to protect methodologies and reporting from interference.

Nagel said central banks must maintain a clear focus on their mandate of price stability, even amid geopolitical tensions, fiscal pressures and rapid technological change. Monetary policy decisions must not be diluted by politically expedient goals, he said.

“It is our responsibility to provide stability and trust,” he said.