LONDON (Reuters) - Following are highlights of remarks made by Bank of Canada Governor Mark Carney to the British parliament’s Treasury Select Committee. Carney will succeed Mervyn King as governor of the Bank of England on July 1.
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”In my view, flexible inflation targeting-as practiced in both Canada and the UK-has proven itself to be the most effective monetary policy framework implemented thus far. As a result, the bar for alteration is very high. In any possible review, it would be vital to recognize that long and varied experience demonstrates that delivering price stability is the best contribution that monetary policy can make to the economic welfare of citizens.
“I have not made an assessment of the merits of altering the monetary policy framework in the UK, and of course any change to the Monetary Policy framework would be the sole responsibility of HM government. I do think, however, that it is important that the policy framework is reviewed periodically.”
Reporting by UK economics team