“Last month, the Treasury set up a unit to explore changes to the Bank’s remit amid mounting political pressure for action to boost economic growth. Options include giving the Monetary Policy Committee greater time to bring inflation back to the 2pc target, handing the Bank a dual mandate to target both employment and inflation – similar to that of the Federal Reserve in America – or targeting spending in the economy rather than inflation. The Canadian central banker, who replaces Sir Mervyn King in July, has said that ‘considerable monetary policy’ is required to take up the slack in the British economy.”
