Comments from Miles in the FT:

  • Sees no signs of persistent underlying inflation
  • Wise to hold nerve after zero inflation data
  • Says he's happy with current guidance
  • Amount of spare capacity in economy is lower than he thought
  • Says he can envision a scenario where inflation significantly under target but right move is to hike

Miles is a dove but he's not signalling any worries.

Full report: Don't panic on inflation, says MPC's Miles
"Britain should not panic and cut interest rates because inflation has dropped to zero and is heading into negative territory, one of the most dovish Bank of England policy makers has told the Financial Times."

He also had an interesting comment on FX:
"It's a mistake to believe you can work out what is likely to happen to the UK exchange rate against the dollar or against the euro by looking at the different stances of monetary policy set by the relevant central banks," he said.

It wouldn't say that's the worst FX trading strategy.