Carney dismisses concern about inflation expectations
By Randall Palmer | February 17, 2013 3:14 AM EST
The future head of the Bank of England, Mark Carney, dismissed concerned on Saturday about the danger of inflation expectations spiralling in Britain and elsewhere.
Carney, governor of the Bank of Canada, has been an advocate of flexible inflation targeting, and said last month that monetary policy was not maxed out in major economies.
He has said the Bank may need to commit to keeping highly accommodative monetary policy even after the economy and possibly inflation pick up.
Asked at a news conference on Saturday if there was a risk that inflation expectations in Britain and other members of the Group of 20 leading economies become unmoored because of loose monetary policy, he said: "The risks globally are deficient demand."
Pressed about the issue in Britain, where inflation has been above the UK's 2 percent target since December 2009, Carney said: "I think that's a question for the governor of the Bank , and his name is Mervyn King."
He was speaking after a meeting of G20 central bankers and finance ministers.
Separately, Carney declined to endorse an International Monetary Fund opinion that the Canadian dollar was 5 to 15 percent higher than warranted by long-term economic fundamentals.
"We don't comment on levels of exchange rates. We've noted for some time that the Canadian dollar is persistently strong," he said.
"It's something we take into account in the setting of monetary policy in Canada. It's one of the reasons why policy is as accommodative as it is."
(Editing by Mike Peacock)
Most Popular Slideshows
- NFL Recap - Week 4: Green Bay Packers 38, Chicago Bears 17 [PHOTOS]
- Derek Jeter With The New York Yankees Through The Years [IN PICTURES]
- Photos Of George Clooney And Amal Alamuddin, They Get Married Again On Monday [Slideshow]
- Taylor Swift's Famous Ex-Boyfriends: From Harry Styles To Joe Jonas [PHOTOS]
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- 3 Signs Nexus 6, 8 Release Date Nears: Leaked Pics, KitKat Factory Image & Android L Details Emerge
- Samsung Galaxy Note 4 Available Through O2 For £380, Other Carriers To Follow Soon
- Apple iPhone 6 vs. OnePlus One: With Invitation-Only Model Rested, OnePlus One Can Be A Real Threat To iPhone 6
- ISIS Supporters are Walking Among the Many in the United States – Report
- ISIS Receives Food, Ammunition Due To Mistake Of Iraqi Pilots
- New Windows OS Is Not Windows 9, Microsoft To Launch Windows 10 As New OS Build
- Airstrikes Against ISIS Has Claimed Innocent Lives In Syria, Dubbed ‘Ineffective’ By Jihadi Fighters, US Military To Ask For More Spending Money