Central banks have a privileged position from which to assess the impact of macroeconomic shocks and the financial stability of groups of intermediaries. The third argument concerns the independence from political interference and the technical expertise of central banks. Similarly, we can identify three arguments supporting the establishment of a supervisory agency outside the central bank.
Inflation as measured by the Harmonised Index of Consumer Prices increased measurably at the beginning of this year, mostly due to temporary and technical factors. Headline inflation is likely to increase in the coming months, but some volatility is expected throughout the year. Due to weak demand and significant slack in labour and product markets, underlying price pressures remain subdued.