This is like getting “two for one” and is now known as the “divine coincidence.” The Bank also judged that the added complexity was not worth the risk that comes with getting into territory better left to elected officials.
As it turns out, central banks that operate under a flexible inflation-targeting regime already consider a range of labour-market indicators and other economic activity measures when setting policy. These contain valuable information about the future path of inflation, in keeping with the divine coincidence. When a tradeoff between stabilizing inflation and real activity does arise, we consider both.