Announcing the U.K. Government budget on Wednesday, Chancellor George Osborne disappointed those who wanted to see a big change in the Bank of England's mandate. The pound strengthened a bit as a result. But I don't think those who are waiting to see the pound weaken, like me, will be disappointed for long.
The Treasury sets the goals for the Bank of England every year in a "remit letter" that it releases in March as part of the budget. The central bank's mandate has been to keep inflation at 2 percent "at all times." There had been a lot of talk before the budget about possible radical changes to this mandate, such as changing the period from "at all times" to "over the medium term" or "over the long term;" raising the inflation target or changing it to a band; or perhaps changing what measure of inflation they target.
(Read More: Osborne Paves Way to Retool Bank of England)



