ScribbleLive

Mark Carney, incoming Bank of England governor, is due up at the Treasury Select Committee at 09:45 when he is expected to give a flavour of how he would handle UK monetary policy at the central bank.

Described by Chancellor George Osborne, who selected Carney for the role in November, as the “outstanding central banker of his generation”, the new governor will take control in June when Mervyn King steps down after a decade at the top.

Reuters reported Citi economist Michael Saunders as predicting “quite a few changes” at the central bank under Carney, including a more flexible inflation target, giving clear guidance on the time at which interest rates will remain low, a further rate cut, and further asset purchases.

In past public statements, Carney has already said that he is open to the idea of growth rate targeting, on top inflation, being part of the Bank of England’s remit.

Some are starting to argue that the world’s central banks are running out of steam in the push towards economic recovery, and that monetary policy is becoming less and less effective as the downturn drags on.

However, Carney is optimistic about the power of monetary policy.

“There remains considerable flexibility, which includes the use of communications and other unconventional instruments over the right horizon," he said at a recent press conference.