–BOE Miles: UK On A Recovery Path, But It’s Fragile
–Miles Comments In An Interview With Dow Jones Newswires
London (MNI) – The circumstances have not been right for further
quantitative easing, at least so far, Bank of England Monetary Policy
Committee member David Miles says in an interview with Dow Jones
Newswires.
The MPC member highlighted the fragility of the UK recovery, but
did not back the case, made by his colleague Adam Posen, for
relaunching quantititative easing.
“There could be circumstances under which I would judge the right
policy would be to embark on further asset purchases but that’s not how
I’ve seen things thus far,” Miles said.
Miles has been widely viewed as one of the MPC members who is most
likely to move to backing more QE, but his comments, coming ahead of
Wednesday’s publication of the MPC’s August minutes, imply he has
not defected from the no change majority on the committee.
Miles said “We are on a recovery path, but it’s fragile.”
The MPC member also looked ahead to policy normalisation.
“I absolutely do expect that at some point down the road the right
strategy will be to move monetary policy back from these extraordinarily
unusual settings we’ve got at the moment to something that looks more
normal,” he said.
–London Bureau; Tel: +44207862 7491; email:drobinson@marketnews.com
[TOPICS: MT$$$$,M$$BE$]
