Bank of England links interest rates to jobless target
"...The central Bank's new governor said Britain is recovering from an unprecedented financial crisis and that "a renewed recovery" is now under way. The Bank raised its growth forecasts, predicting economic growth will reach an annual rate of at least 2% by the end of 2013, a year sooner than it previously predicted.
Carney said: "There are clear signs that economic activity has strengthened this year.
"But there should be little satisfaction. Much is at stake as we seek to secure this recovery and return inflation to target."
The unemployment rate is the biggest sign that the UK still needs help, Carney said.
"Until the margin of slack within the economy has narrowed significantly, it will be appropriate to maintain the current exceptionally stimulative stance of monetary policy," the BoE said.
Concerns that the current recovery, which has seen GDP rise 0.9% in the first six months of the year, could increase inflation beyond the bank's 2% target were dismissed by Carney, although he said inflation remained a primary concern. Inflation is unlikely to rise above 3% this year - lower than previous fears of a peak of around 3.5%.
Carney said the unemployment target could be abandoned should the bank's internal analysis show GDP growth is the cause of a rise in prices of more than 2.5% in two years time..."
http://www.theguardian.com/business/2013/aug/07/bank-of-engand-links-interest-rates-jobless-target
So the BoE is tying itself to the apron strings of the Government's statistical-saccharine-suppliers.