Since the financial crisis, confidence in traditional monetary policy has been shaken, forecasting tools are being modified, central bankers' objectives are being debated, and the issue of financial and operational independence has been tested. The central banks operating environment is also in transition. Financial markets remain fragile, sovereigns’ debt laden, central banks are providing massive amounts of liquidity, banks are under regulatory pressure, economic growth is limited, and there are concerns about the future impacts of current interventions.
All of these and more suggest that we are likely to remain in interesting times as we continue to navigate our way through the crisis. In September 2013, PwC organised a two day round table to discuss these and other issues with invited central bankers and PwC representatives from around the world.
This report sets out the challenges of a new era of central banking in which longstanding economic and policy making certainties no longer apply and central bankers are taking on responsibilities and an associated public profile that few have encountered before.