There is one other aspect of central bank autonomy which deserves mention, namely the potential impact of fiscal policy on monetary policy. Without fiscal discipline, the ability of even the most independent central bank to combat inflation successfully is severely curtailed. This is particularly true when the government has significant recourse to the central bank to finance its budget deficit.
A central bank can hardly be autonomous if it is obliged to finance unsustainable government deficits. In the central banking literature, this is referred to as “fiscal dominance”. 4. Uncertainty  It might sound strange to observers who are not central bankers or economists, to indicate that uncertainty is one of the difficult challenges facing central banks.