BoE's Dale hits back at Carney's inflation ideas

Bank of England chief economist Spencer Dale has hit back at incoming governor Mark Carney's radical ideas on inflation.

To push growth, Carney, who will replace Mervyn King as the Bank's head next year, said central bankers should consider abandoning inflation targets in favour of GDP goals, a move that would mark a significant departure from central bankers' rule book.

However in his own address, Dale (pictured) voiced his fears about such a change and said it would be a strategy not without risk. 

'The punchline is there's no free lunch to coming out of these problems, there's costs and risks associated with QE [quantitative easing] and there's costs and risks associated with things like committing to levels of GDP,' Dale said, speaking at a Market News International conference.