Draghi's remarks coincided with the latest in a string of calls by ministers for closer co-ordination between Prime Minister Viktor Orban's government and the National Bank of Hungary to shore up central Europe's most indebted economy.
The central bank has been at loggerheads with Orban's government for over two years and perceived threats to its independence have also brought clashes between Hungary, the European Commission and the European Central Bank itself. Orban, who has appointed people close to his Fidesz party to key public posts since taking power in 2010, will pick a new governor in February to replace Andras Simor, whose six-year mandate expires in March.
Some analysts are concerned Orban will choose a loyalist, which could make the bank more politicised and usher in unconventional steps to boost growth ahead of 2014 elections. Rate-setters already appointed by the ruling Fidesz party's parliament majority have outvoted Simor and his deputies in the past four months, cutting rates to aid the sickly economy.
"A key prerequisite for a credible monetary policy is the independence of the central bank," Draghi told a conference in Budapest organised by the National Bank of Hungary. "The ultimate success of a central bank in maintaining price stability depends on its credibility." Independence means the central bank must have the means and instruments needed to achieve its price stability objective without being influenced by outside forces, Draghi added.