ECB’s de Guindos: Central Bank Independence Key for Markets

15 January 2026

By Marta Vilar – MADRID (Econostream) – European Central Bank Vice President Luis de Guindos said on Thursday that financial markets place high value on central bank independence because it underpins confidence that inflation will remain under control.

In an interview with Politico, de Guindos said that “independence in central banking gives rise to the best outcome in terms of inflation and in terms of interest rates.”

Without independence, monetary policy risked becoming subordinate to fiscal policy, undermining its primary objective of controlling inflation, he said.

“Simultaneously, an independent central bank is much more credible, and this also has consequences in terms of interest rates,” he said. “If you look at the yield curve, the yield curve for an independent central bank is always below that of a non-independent one.”

Asked about the potential impact on global markets of a less independent US Federal Reserve, de Guindos declined to speculate but stressed that independence was critical for markets when assessing how inflation would be managed.

Turning to the profile of his eventual successor as ECB vice president, de Guindos said strong connections in Brussels, experience in central banking, and improved geographical balance within the ECB Executive Board would all be important considerations.

“Something that I also think is important: central bankers cannot live in an ivory tower and this is becoming more and more obvious,” he said. “For that, it helps to have a broader view on how monetary policy and financial stability interact with other parts of economic policy.”

De Guindos described all six candidates for the vice presidency as highly qualified, though he acknowledged that the absence of female candidates was “unfortunate.”

Asked whether this situation could strengthen the case for ECB Executive Board member Isabel Schnabel as a potential successor to ECB President Christine Lagarde, he echoed the latter’s comments about previous instances where holding multiple roles within the Executive Board was deemed incompatible.

“I’m not a legal expert but I think that precedents are important in life,” he added.