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Osborne open to scrapping inflation target

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Osborne open to scrapping inflation target

Chancellor George Osborne has signalled that he is open to scrapping the UK’s 2% inflation target for a goal focused on growth, in an appearance before the Treasury Select Committee.

Osborne’s comments come after Mark Carney, who is set to become Bank of England governor, suggested central banks could target nominal GDP rather than inflation levels.

Osborne said there were ‘no plans’ to abandon the Bank’s inflation target but praised Carney for leading debate on the issue.

He said the inflation target had ‘served the country well’ and that a change would need to be able to demonstrate ‘significant rewards’.

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