The MPC will also be expected to clearly and fully explain the “tradeoffs” or compromises it has made to control inflation, written on the day the MPC Minutes are published, instead of the simple apology currently offered.
In addition, the new remit could allow the MPC to use “unconventional monetary instruments” to keep inflation stable. He exampled the US Federal Reserve’s commitment to keep interest rates low, provided inflation also stays under control.
“This can help the economy because it gives families planning their futures, and businesses wondering whether to invest, more confidence that interest rates will stay lower for longer.
“So I am asking the MPC to provide an assessment of how intermediate thresholds might work in Britain, and to give that assessment in its August 2013 Inflation Report,” he said.
This will be issued under the Governorship of Mark Carney, following agreement from the current Governor Mervyn King.
Osborne also confirmed the latest LIBOR fines, most recently from RBS
and UBS, will fund military mental health charity Combat Stress and Christmas boxes for troops abroad.
The government remains in talks to introduce a new Business Bank and considering how to shape an extension to the Funding for Lending Scheme.
To read the Budget speech in full, click HERE
