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King Says BOE Must Keep Inflation Goal as Tool Revamp Looms

Bank of England Governor Mervyn King said inflation targeting has served the U.K. well over two decades and should remain at the heart of monetary policy as officials take on powers to ensure financial stability.

“The case for price stability is as strong today as it was 20 years ago,” King said at the London School of Economics in the U.K. capital late yesterday. While there are circumstances where it may be “justified to aim off” the target for a while, he said this wasn’t a call for a change to the bank’s remit.