MNI: UK Chancellor Confirms Bank of England Remit
Bank of England's 2% inflation target remains in place as Chancellor looks to inflation fight.
The UK faces many challenges in the inflation fight and the Bank of England will have the wholehearted support of the government as it faces up to the challenge, Chancellor of the Exchequer Jeremy Hunt said Thursday, as he confirmed the central bank's monetary policy remit would be unchanged.
"We need fiscal and monetary policy to work together – and that means the government and the Bank working in lockstep," Hunt said.
The Bank's current monetary policy remit currently sets an "inflation target as 2 per cent as measured by the 12-month increase in the Consumer Prices Index (CPI). The inflation target of 2 per cent is symmetric and applies at all times. This reflects the primacy of price stability and the forward-looking inflation target in the UK monetary policy framework."