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Dale says open to remit improvements

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(Globalpost/GlobalPost)

LONDON (Reuters) - Bank of England chief economist Spencer Dale said on Friday he was open to improvements of the central bank's remit, currently focused on keeping inflation at 2 percent, although aspects of it had been effective.

Chancellor George Osborne is expected to announce either a review of the BoE's mandate or tweak it when he presents his annual budget on Wednesday.

"We will continue to wait for the government to make a decision on the remit... There are aspects of the current framework that have worked well," Dale said in a question-and-answer session after delivering a speech at the bank.

"We should be open to better ways," he added.

In the speech, Dale warned of dangers in suggestions that central banks should focus more on economic growth, adding that it was unclear that a major monetary boost to output would avoid pushing up inflation.

"Ultimately, the best contribution that monetary policy can make to sustainable growth and long-run prosperity is to deliver enduring price stability," he concluded in the speech.

The BoE will hit its inflation target, he added in response to a question.

(Reporting by Christina Fincher and Shadia Nasralla, writing by Olesya Dmitracova)

http://www.globalpost.com/dispatch/news/thomson-reuters/130315/dale-says-open-remit-improvements