Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Carney hints at scrapping inflation targets in aggressive push for growth

1 Comment
Carney hints at scrapping inflation targets in aggressive push for growth

Incoming Bank of England governor Mark Carney has hinted at scrapping inflation targeting.

In a speech set to re-write the central banking rule book, Carney (pictured) broached the idea of taking more aggressive action to boost ailing economies.

He will take over from Mervyn King next year, who in June steps down as the Bank of England governor.

'To achieve a better path for the economy over time, a central bank may need to commit credibly to maintaining highly accommodative policy even after the economy and, potentially, if inflation picks up,' Carney said, in an address to the CFA Institute in Toronto.

'To "tie its hands" a central bank could publicly announce precise numerical thresholds for inflation and unemployment that must be met before reducing stimulus.  If yet further stimulus was required, the policy framework itself would likely have to be changed.

Carney added: 'For example adopting a nominal GDP level target could in many respects be more powerful than employing thresholds under flexible inflation targeting.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Taxicab Tenner: AXA IM's Nicolas Trindade

Taxicab Tenner: AXA IM's Nicolas Trindade

After a summer break, it is the turn of AXA Investment Manager's Nicolas Trindade to give a £10 view of how fixed income is faring.

Play Wealth Manager Olympics: the Relay

Wealth Manager Olympics: the Relay

In the final round of the Wealth Manager Olympics, our intrepid athletes team up for the relay.

Play Wealth Manager Olympics: the Shot Put

Wealth Manager Olympics: the Shot Put

After busting a gut in the 100m sprint, our wealth manager Olympians displayed their brute strength in the shot-put.

Read More
Your Business: Cover Star Club

Profile: gearing up for the shift from consolidation to start-ups

Profile: gearing up for the shift from consolidation to start-ups

‘I think the industry is evolving rapidly, but not necessarily as a whole,’ says the head of recently launched Charles Nicholson AM

Wealth Manager on Twitter