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Osborne open to scrapping inflation target

by Daniel Grote on Dec 14, 2012 at 08:41

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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2 comments so far. Why not have your say?

How does this: '‘no plans’ to abandon the Bank’s inflation target'

lead to a headline like this: 'Osborne open to scrapping inflation target' ?

Quality journalism!

Daniel, was it you behind 'Freddie Star ate my Hamster'?

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Keith Cobby

Dec 14, 2012 at 10:35

We are being softened-up for a relaxation of the inflation target. How else, other than through inflation, currency depreciation and QE will we ever reduce our debts.

The economic centre of gravity has moved east.

I hope you all enjoyed it while it lasted.

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