In the interview he attended with Fatih Karahan, Governor of the Central Bank of the Republic of Turkey (CBRT) within the scope of the Istanbul Economic Forum, Hernandez de Cos stated that the conflicts in the Middle East created a negative supply shock for the economy.
Stating that central banks react to such shocks at different speeds, Hernandez de Cos said that while rapid steps were taken in countries where domestic demand conditions required, a more gradual approach was followed in other countries.
Hernandez de Cos stated that central banks should constantly update the analysis tools they use to evaluate economic developments, and this should play an important role in monetary policy decisions.
Emphasizing the importance of trust in central banks for the success of monetary policy and financial stability, Hernandez de Cos said that this trust can be achieved with clearly defined duties, central bank independence and accountability.
Hernandez de Cos stated that the objectives of macroprudential policies and monetary policy, which aim to limit risks in the financial system, are generally compatible with each other, and conflicts of interest that may arise from time to time have been largely managed successfully in the past.
