A rather Luke warm announcement from the new Governor of the BoE. A weird logic that states that interest rates won't rise until unemployment gets bellow 7% which would effectively tie his hands and simultaneously give the green light for even more bad investments and poor lending decisions. Everyone heard it. Then: except in the case that we think inflation is accelerating ..... Eh? In other words scrap what I said because it means nothing, we are looking at inflation to guide interest rate rises. That of course has always been the policy so we can happily ignore the other one. Well no we cant this puts Carney in a fix. Suddenly the windows open and the light floods in. If employment (growth) is the first part of the equation, then how will the bank determine where the growth is coming from ? Is it demand or supply side ? Demand side growth that we had before the great collapse certainly helped employment figures. As it appears Carney doesn't side with Austrian economists then he sees price rises as a natural response to growth and not to an expanded money supply. Interesting trap which confirms my suspicion that the BoE is not fit for purpose. Its no more than a sham and a dangerous one at that. So, don't worry when inflation goes up, as long as unemployment is coming down its all going according to plan and the BoE won't be putting the brakes on unless of course its an indeterminable 'wrong' type of inflation in which case expect the interest rate rockets to be ignited. Meanwhile Government borrowing goes on unabated and the banks service that.