Central bank independence has typically been granted in conjunction with an explicit mandate that makes achieving low and stable inflation one of the goals of monetary policy. Central bank independence with a mandate that includes price stability increases the credibility of monetary policy with regard to achieving low inflation.
However, we should be aware that both Africa’s traditional and new partners are under enormous pressure to cut expenditure, and this makes aid levels highly vulnerable. Therefore, we should do everything possible to encourage them to live up to their commitments by, among others, reaffirming our side of the bargain.