ECB Sintra Forum Flags Ongoing Inflation Fight and Central Bank Independence

Central bank heads from the U.S. Federal Reserve, the European Central Bank, the Bank of England and the Bank of Canada gathered at the ECB Forum in Sintra. They underscored that while price pressures have eased, inflation remains the chief policy priority and that interest‑rate tools, not forward guidance, will continue to steer monetary policy.

The panel also examined the limits of forward guidance, the growing relevance of artificial intelligence for productivity and financial‑system risks, and the importance of preserving central‑bank independence after a recent U.S. Supreme Court ruling that modifies the president’s authority over agency heads. In addition, the ECB mentioned a possible increase in reserve‑requirement ratios as a cost‑saving measure, though it is not seen as a major policy lever.