Carney prepared to tolerate inflation overshoot as prices expected to rise

To boost growth and employment

Bank of England governor Mark Carney has said he is willing to allow inflation to overshoot its 2% target, in order to boost economic growth and reduce unemployment.

Speaking at public roundtable in Nottingham, Carney (pictured) said he could let inflation go above its 2% target, which could happen as early as 2017. UK CPI inflation currently stands at 0.6%, according to the Office for National Statistics, but Carney said the weakening of sterling could cause it to rise next year. Sterling has depreciated against the US dollar by some 17% this year, much of this due to the outcome of the EU referendum, as well as worries over a potential 'hard' Brexit from the euro bloc. As a result, some economists forecast inflation could reach 3% by the end ...