UPDATE 1-Bank of England's King says time to review inflation remit

Tue Jan 22, 2013 5:34pm EST
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* King says may need to give more guidance on CPI goal

* Remarks come after Fed, Bank of Canada change tack

* Bank open to more asset purchases but no panacea

* "Gentle recovery", above-target CPI seen for 2013

By Padraic Halpin and David Milliken

BELFAST, Jan 22 (Reuters) - The Bank of England's inflation-targeting remit needs to be fine-tuned but should not undergo fundamental change, central bank governor Mervyn King said in a speech on Tuesday.

He also said that the central bank was ready to restart bond purchases or cut interest rates if needed to boost the economy, but that Britain needed more fundamental reforms if it was to exceed the "gentle recovery" he expects for 2013.

King steps down in June, and his successor Mark Carney, head of the Bank of Canada, has promoted long-term commitments to low rates, which are also in favour at the U.S. Federal Reserve.

To date the Bank of England has been unenthusiastic about explicit interest rate commitments, arguing its existing policy framework is clearer than other central banks'.   Continued...