BoE remit change heralds ‘monetary activism’

The British government is proposing to change the remit of the Bank of England to herald in a new era of ‘monetary activism.’

The main change to the approach to monetary policy would be that the bank would signal that interest rates are being kept at a low rate as long as inflation stays below its 2% target.

“What is happening is that [George] Osborne is preparing a more open framework for Carney,” said Guy Monson, managing partner at the private bank, Sarasin.