Carney: Bank's 2% inflation target became 'dangerous distraction'

The governor of the Bank of England, Mark Carney, has warned the 2% target for inflation became a "dangerous distraction" for the UK's policymakers.

Speaking on the eve of a Budget which is expected to show further signs the economy has healed, Carney yesterday outlined the Bank's wider role following the recent increase in its responsibilities. Carney (pictured), the former Canadian central bank governor, took over last July with a mandate to modernise the Old Lady of Threadneedle Street and prepare it for its new - and much wider - mandate of financial supervision and regulation. Yesterday two new deputy governors were appointed, with many other senior officials stripped of their previous roles and given new responsibilities. Am...