Economics
BOE Could Target U.K. Productivity Goal Under Labour Government
- Labour Party commissions report into Bank of England mandate
- Review recommends central bank would keep its independence
Photographer: Chris Ratcliffe/Bloomberg
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The Bank of England’s remit should be overhauled to include a 3 percent target for productivity growth, according to a report commissioned by the U.K.’s opposition Labour Party.
The central bank should also have its toolkit expanded to include credit guidance and greater use of macro-prudential policy, said the study, led by GFC Economics’ Graham Turner. The proposals, for consideration in Labour’s policy review ahead of the next election, recommend that the BOE should keep its independence, and that it should open an office in Birmingham.