Carney prepared to tolerate inflation overshoot as prices expected to rise

To boost growth and employment

Laura Dew
clock • 1 min read

Bank of England governor Mark Carney has said he is willing to allow inflation to overshoot its 2% target, in order to boost economic growth and reduce unemployment.

Speaking at public roundtable in Nottingham, Carney (pictured) said he could let inflation go above its 2% target, which could happen as early as 2017. UK CPI inflation currently stands at 0.6%, according to the Office for National Statistics, but Carney said the weakening of sterling could cause it to rise next year. Sterling has depreciated against the US dollar by some 17% this year, much of this due to the outcome of the EU referendum, as well as worries over a potential 'hard' Brexit from the euro bloc. As a result, some economists forecast inflation could reach 3% by the end ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Chancellor Khalaf has a plan to make our economy boom

Chancellor Khalaf has a plan to make our economy boom

'So, Sir Keir, if you're reading, I do genuinely hope Rachel is doing okay. And my number's still the same. So, you know, call me'

Laith Khalaf
clock 25 July 2025 • 5 min read
UK capital markets need to close gap between 'perception and reality' - Poppy Gustafsson

UK capital markets need to close gap between 'perception and reality' - Poppy Gustafsson

Speaking at IA annual conference

Sorin Dojan
clock 26 June 2025 • 2 min read
Trust in ONS data 'very low' as financial services shifts to alternative sources

Trust in ONS data 'very low' as financial services shifts to alternative sources

Follows latest inflation blunder

Sorin Dojan
clock 24 June 2025 • 4 min read