Carney meets treasury aide to discuss remit

Incoming Bank of England governor Mark Carney has said that he met with a treasury aide to discuss the central bank's policy remit. Former Monetary Policy Committee member Andrew Sentance:

In the run-up to the Budget, there is renewed speculation about a change in the remit for the Bank of England Monetary Policy Committee (MPC). Last Thursday, David Cameron’s economic speech and a front page Financial Times story suggested that Mark Carney, the new Bank governor, could be given more scope to “rescue the economy” with looser monetary policy.

This would take monetary policy in the wrong direction. Giving the MPC more latitude to pursue laxer monetary policies and allow even higher inflation would be a retrograde step.

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