Carney: some shocks might warrant lower inflation target

Bank of England governor Mark Carney
Mark Carney

Bank of England (BoE) governor Mark Carney today outlined a scenario that could see the UK lower its inflation target.

In testimony before the House of Lords, Carney said: "If it were identified that we were in a prolonged supply shock that had positive productivity implications… there might be a case for adjusting the level of the inflation target."

Carney was responding to questioning on the implications of low inflation by Nigel Lawson, who himself once set monetary policy for the UK as chanc

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