Why we're all banking on the new Governor of the Bank of England In Canada, Mr Carney found a way to boost the economy even in these conditions. As he describes it, he took his message to the Canadian people. In the early days of the financial crisis in 2009, he announced that interest rates would remain at a very low level for more than a year, come what may. Explaining his ideas in Parliament a few months ago, he said that this "reached over the heads of central bank watchers and the financial markets and directly to Canadians." People were confident that they had time to "plan and put in place whether they were going to buy a house, renovate, make an investment." A British version of this "forward guidance" concerning interest rates is likely to be one of his major announcements today. The remaining question is whether the Governor needs to reinforce his words with something stronger. Mr Carney may well announce a new rule for the Bank, on top of its existing target to keep inflation low. This would mean that he would continue giving extra support to the economy even if there were a short-term upward effect on prices - while sticking to the firm commitment to low inflation in two or three years" time. This is another radical idea that would be well suited to the emergency conditions in which the UK economy still finds itself. Mr Osborne should be ready to back Mr Carney if he decides to take this step. Some argue that inflation is too high and the Governor should be raising interest rates, not making it easier to borrow. They would be to right to say that the Bank has only met its monthly target six times in the past seven years. But much of this inflation is due to factors out of the Bank's control. Very high food and oil prices have been set in the world market, not here. Domestic inflation is low because wages of British workers are falling. Mark Carney certainly has room for action. For the nation's army of savers, this talk of continued low interest rates will, of course, go down like the proverbial lead balloon. But interest rates are low because the economy is so weak. The best hope for savers is for a return to strong growth and to normal economic conditions. As the famous American economist Milton Friedman showed, the US only recovered from the Great Depression when its central bankers recognised that grave times required bold and unorthodox measures. The experience of Japan's 20-year economic slowdown is also instructive. Throughout that time, higher government borrowing and spending did not provide the "stimulus" that the economy needed. Last year the Japanese government set a fresh course. Shinzo Abe, the new Japanese prime minister, appointed a governor of the bank of Japan who would focus on high growth as well as low inflation. Their economy has responded positively so far, which will have influenced Mr Carney. When we look at economic policy as a whole, we find there is real cause for optimism. Following Ed Balls's change of heart in June, no major party wants to solve our problems with another binge of public spending. Ministers are fighting to deliver a liberated enterprise economy, even if in many areas, such as transport and energy, their efforts have barely begun. In effect, George Osborne wants to win a treble: sound public finances, an enterprise revolution and the best support from the Bank of England that he can get. The third leg of the treble is in Mark Carney's hands. It is in all of our interests that he succeeds. Andrew Haldenby is director of the independent think tank Reform. Kick-starting growth" is available at www.reform.co.uk