Next BoE chief Carney signals flexibility on inflation target

EDMONTON, Alberta: The next Bank of England governor, Mark Carney, endorsed on Wednesday the idea of sometimes letting inflation run above target for longer than normal, while also warning of the risks to credibility if this is taken too far or done too often.

Carney, governor of the Bank of Canada till June 1, sang the praises of flexible inflation targeting, saying tighter monetary policy might be needed to prevent imbalances from developing and looser policy might be needed to avoid further damage to the economy.