As they normalise their policy stance, central banks will need to have a "thick skin" to prevent their operational independence from being constrained by jittery markets and highly indebted constituents – so-called ‘financial and fiscal dominance' – Bank for International Settlements general manager Jaime Caruana said this week at a Mexico City conference on central bank independence.

"The nature of the challenges to central bank independence has evolved in recent years. Traditionally, central