Wednesday, December 12, 2012
“keep rates on hold for an extended period of time” – So what is 5 years?
Mark Carney, the next governor of the Bank of England, has suggested he will act much more aggressively to revive the UK economy when he takes charge next summer, including dumping the BoEâ€™s much-vaunted inflation target if growth fails to pick up. In a clear break with the views of the BoEâ€™s current senior management, Mr Carney, now governor of the Bank of Canada, said on Tuesday that central banks should consider more radical measures â€“ such as commitments to keep rates on hold for an extended period of time and numerical targets for unemployment â€“ when rates are near zero. More If those measures fail to have the desired effect, Mr Carney said central banks should consider scrapping their inflation targets â€“ a cornerstone of economic policy around the world in recent decades