Report proposes mandating BoE to target productivity growth
UK opposition says BoE should not have to rely on interest rates to lower inflation
A report issued by the UK’s opposition party has said the Bank of England should have its mandate adjusted to require it to explicitly target productivity growth.
“The BoE should be set a productivity growth target of 3% per annum,” Labour’s Financing Investment report says. “Using credit guidance, macro-prudential supervision and interest rates, the BoE will be expected to set out how its policies are contributing to this target.”
According to the report, the UK government should aim for a
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