Carney on the dangers of meddling with UK's inflation target

The incoming Bank of England governor Mark Carney has said "the bar for change to the monetary framework is very high", warning any change to the current interest rate target could damage the economy.

In his first ever Parliamentary Q&A, the outgoing Bank of Canada governor said inflation targeting is "the most successful monetary policy measure in existence", but cautioned "the main issue is the speed with which inflation returns to target." There has been growing speculation he may push for the inflation target to be raised from its current level of 2% given the external pressures on prices, but today he cautioned against such a change. In his written submission to ministers, Carney warned that "moving opportunistically to a higher inflation target would risk de-anchoring inflati...