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		</div><p>The Bank of England will not take instructions on its policies from politicians, Bank governor Mark Carney said, just a week after Prime Minister Theresa May took a swipe at the impact of the Bank&#8217;s actions on &#8220;ordinary&#8221; people.</p>
<p>Speaking at the Birmingham Town Hall as part of the Bank&#8217;s Future Forum event, Mr Carney said it became difficult for the Bank when politicians commented on its policies rather than its objectives.</p>
<p>Mr Carney said politicians had done a &#8220;good job&#8221; of setting up the system in which the Bank operates, but added: &#8220;We are not going to take instruction on our policies from the political side.&#8221;</p>
<p>Mrs May hit out the Bank during the Tory conference last week.</p>
<p>She said it was the rich who benefited from the Bank printing money and cutting interest rates in the years after the 2008 financial crash, while &#8221;ordinary working-class people&#8221; were asked to make sacrifices in terms of stagnating pay, job insecurity and unaffordable housing.</p>
<p>The Bank took the decision in August to cut interest rates from 0.5% to 0.25% and fire up the printing presses for more quantitative easing in a bid to ward off recession following the Brexit vote.</p>
<p>Mr Carney&#8217;s comments came as he said earlier on Friday that he was willing to allow inflation to run &#8220;a bit&#8221; higher than its 2% target if it safeguarded jobs and boosted economic growth.</p>
<p>He said between 400,000 and 500,000 jobs could have been at risk if the Bank had decided not to take action in the wake of the Brexit vote.</p>
<p>Speaking about the collapse in the pound since the EU referendum result, Mr Carney said the Bank &#8220;was not indifferent&#8221; to the value of sterling when targeting inflation.</p>
<p>He said changes in the exchange rate &#8220;helps cushion the adjustment in the economy&#8221;, preventing a harder impact on people&#8217;s jobs and wages.</p>
<p>&#8220;The exchange rate does matter for inflation, changes in the exchange rate do have an impact on inflation over a period of time,&#8221; he added.</p>
<p>&#8220;We do take it into account when setting monetary policy.</p>
<p>&#8220;We&#8217;re not indifferent to the level, we&#8217;re not going to target the level, we&#8217;re not going to have some magic number for it, but it does factor into our thinking.&#8221;</p>
<p>He said: &#8220;The economy has just started a major period of adjustment and what we all want is to make this as successful as possible.&#8221;</p>
<p>The pound regained some of its mid-day losses against the US dollar following Mr Carney&#8217;s comments about the UK currency.</p>
<p>But in afternoon trading, the pound fell 0.5% to 1.218 US dollars and was up 0.08% against the euro at 1.108 euro</p>
<p>Sterling has lost around 18% of its value against the US dollar since the Brexit vote and endured a torrid time on the currency markets last week after investors became increasingly alarmed that Mrs May was seeking to break free of the European single market by opting for a &#8221;hard Brexit&#8221;.</p>
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