When central banks make decisions, the world listens. The interest rate they set can determine whether a business hires or fires, whether a family can afford a mortgage, and whether an economy grows or shrinks. For decades, the goal of those decisions has been simple: keep inflation under control. But in a world defined by disruption—supply chain shocks, technological change, political volatility—is that still enough?

At Humble, we don’t think so. Growth isn’t just an outcome; it’s a necessity. It’s the difference between an economy that builds opportunity and one that slowly fragments. It’s why we built The Growth Imperative™: our belief that growth is not simply a metric, but a mindset, strategy and habit. We apply this thinking with the businesses and communities we serve—and we believe it’s time for central banks to do the same. 

 

Inflation Targeting Isn’t Working Like It Used To

 

For years, most central banks have had one overriding mission: keep inflation at around 2%. This made sense in an era where inflation was the biggest threat. But times have changed.

The last few years have exposed the cracks in this approach. A global pandemic, geopolitical conflicts, and energy price shocks sent inflation soaring—and central banks responded by raising interest rates. The result? Higher mortgage repayments, struggling small businesses, and still—too often—stubborn inflation. Focusing narrowly on prices often misses the bigger picture: when productivity is stagnant, investment is weak, and real incomes are falling, something isn’t working.

Put simply: keeping inflation stable doesn’t guarantee prosperity. You can hit a 2% inflation target in an economy that’s barely growing. That’s not success.

 

A Better Alternative: Targeting Economic Growth

 

There is a smarter way. Instead of targeting just prices, central banks could aim for what really matters—overall economic growth.

Specifically, this means setting a target for what economists call nominal GDP—the total value of everything an economy produces, without adjusting for inflation. It’s a simple measure, and that’s why it works. It captures both changes in prices and changes in output. If inflation goes up, but the economy is shrinking, nominal GDP will show the weakness. If prices are stable but output is booming, it shows that too.

This approach isn’t just technical—it’s practical. During a crisis, such as the COVID-19 pandemic, inflation can rise even as the economy crashes. In that case, a narrow inflation target would tell central banks to tighten policy (which makes things worse), while a growth target would tell them to support recovery. That’s the flexibility we need in an uncertain world.

 

Growth Is Not a Luxury—It’s a Lifeline

 

At Humble, we work with businesses across the world who are facing disruption every day. We see first-hand what happens when growth stalls: confidence evaporates, decision-making freezes, and businesses shrink back from opportunity. The same applies to entire economies.

That’s why we believe in The Growth Imperative™. It’s a simple idea with powerful consequences: growth must be intentional. It doesn’t happen by accident. You need to adopt the mindset that growth is possible, even during chaos. You need habits that build resilience. And you need strategies that make progress inevitable.

The same is true for countries. Growth means investment, productivity, new jobs, better services, stronger communities. When economies fail to grow, we don’t stand still—we go backwards. We lose the dynamism that makes real change possible.

By targeting economic growth, central banks would be embracing this imperative. They would be helping to create the conditions for people, businesses and communities to thrive—not just survive.

 

What It Would Take to Make the Shift

 

This isn’t about abandoning stability. It’s about pursuing stability with ambition.

Targeting overall economic growth would require central banks to improve how they forecast, how they communicate, and how they think about risk. But many of those changes are already happening. Technology now allows for better real-time tracking of the economy. Public trust in central banks can be strengthened by a goal that people actually understand—growth is something everyone can relate to.

This approach also builds in automatic flexibility. If inflation rises because of a temporary shock (like a rise in oil prices), a growth target allows for that to be absorbed without forcing unnecessary pain on households and businesses. And when inflation is low but the economy is weak, it gives a clear signal to stimulate demand.

In short: it aligns central bank actions with the lived reality of the economy.

 

The Bigger Picture

 

Some may say that growth can’t be the only goal. And that’s true. We need sustainable growth. Inclusive growth. Growth that doesn’t destroy the planet or leave communities behind. But we must start by recognising that growth—done well—is what unlocks those other goals.

It’s hard to solve climate change in a shrinking economy. It’s hard to invest in public services if the tax base is stagnant. It’s hard to tackle inequality if businesses are struggling to survive, let alone thrive.

Economic growth is the foundation upon which all other progress is built.

 

It’s Time to Reimagine Central Banking

 

The world has changed, and the way we manage our economies needs to change with it. Inflation targeting helped solve yesterday’s problems—but it’s not enough for today’s challenges.

It’s time to put growth back at the centre of economic policy. Central banks should stop targeting narrow inflation numbers and start aiming for what really matters: a growing, resilient, opportunity-rich economy. That’s what people want. That’s what businesses need. And that’s what will deliver real progress.

At Humble, we work every day to support individuals and organisations to unlock growth—because we know what’s at stake when we don’t. The same lesson applies to countries. Growth isn’t optional. It’s essential.

Without growth, we invite decline.