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Opinion
Daniel Moss

Bank of England's Caution Is Justified. What Happens When It Isn't?

The textbooks would say to raise interest rates. Mark Carney is going off script.
Mark Carney, Britain's "unreliable boyfriend," will have a chance to prove himself.

Mark Carney, Britain's "unreliable boyfriend," will have a chance to prove himself.

Photographer: Chris J Ratcliffe

Britain's labor market is powering ahead, and inflation exceeds the Bank of England's target. Is it hot in here? Don't expect Governor Mark Carney to cool things off.

Here's a major economy where price increases have not only picked up, but at 2.6 percent easily top the 2 percent target. Unlike in the U.S., the euro zone and Japan, a strong job picture is accompanied by inflation that would, according to textbooks, provide a great rationale for increasing interest rates.