LONDON (Reuters) - Chancellor George Osborne said on Wednesday that he was changing the Bank of England’s remit and that the central bank may need to use unconventional monetary policy along with inflation targeting.
Osborne said he had run the plan by current and future Bank of England governors, Mervyn King and Mark Carney, and that they had agreed.
The Bank has taken a flexible approach to its remit to target inflation of 2 percent. Price growth has run above target for most of the of the last five years as the bank sought instead to prop up the economy and avoid the risk of deflation.
Writing by Guy Faulconbridge, editing by Jeremy Gaunt