Sir Mervyn King says Britain's inflation-targeting regime 'has come of age' and should be reviewed
Tuesday 22 January 2013
Britain’s 20-year-old inflation-targeting regime “has come of age” and should be reviewed, the outgoing Bank of England Governor, Sir Mervyn King, said tonight.
Sir Mervyn’s comments pave the way for the first major overhaul of the Bank’s inflation target since it was granted independence in 1997 when Canadian Mark Carney succeeds him in July.
Sir Mervyn’s intervention comes as central banks across the world sharpen their armoury in an attempt to shore up a fragile global recovery. He said in Belfast: “In the UK, the inflation target was introduced almost 21 years ago, and it has now come of age. It would be sensible to review the arrangements for setting monetary policy.”
The Bank is tasked with keeping inflation at 2 per cent, but the cost of living has been above the target since the end of 2009, fuelled by higher energy bills, food costs, and the Treasury’s rise in VAT to 20 per cent two years ago.
- 1 If you're not already angry about the refugee crisis, here's a history lesson to remind you why you really should be
- 2 Moscow voted the world's unfriendliest city
- 3 Idris Elba is ‘too street’ to play 007, says James Bond author
- 4 Pansexual: What is it - and when did the term gain popularity?
- 5 I'm pansexual – here are the five biggest misconceptions about my sexuality
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
UN investigating British Government over human rights abuses caused by IDS welfare reforms
iJobs Money & Business
£20000 - £25000 per annum: Recruitment Genius: We are a vibrant and establishe...
£15000 - £20000 per annum: Recruitment Genius: An experienced Repayments Advis...
£25000 - £30000 per annum: Recruitment Genius: This leading provider of financ...
£20000 - £25000 per annum + competitive: SThree: Are you looking to take your ...