Well-done Mr. Carney for doing a volte-face and unhooking the commitment, made not six months ago, to link the unemployment rate to higher interest rates.  Clearly the economy is reviving much faster than anticipated (about two years or so ahead of time) and, as such, this give the flexibility to buy time.

Frankly, when Mark Carney made his predictions it appeared that he was following the American economic model since, hitherto, no one had linked unemployment and interest rates before in the UK.  The Bank of England (BOE) has always been pre-occupied with inflation. Continue reading →