Osborne says new Bank remit isn't a license for inflation

Speaking at the Treasury Select Committee chancellor George Osborne has said that the new Bank of England remit has been adjusted to reflect operational practice. Osborne said that he had asked the Bank to explicitly look at what the Fed had done and that the change was made to make sure rules were clearer to allow for the use of unconventional arrangements.

The chancellor said that he does not accept that this altered remit is a license for higher inflation. He noted that the US is experiencing lower inflation than the UK.