News Column

PRESS: MPC Member Miles Says Rate Rise Moving Nearer - Telegraph

June 22, 2014

Steve McGrath

LONDON (Alliance News) - Britain's recovery has become entrenched and the Bank of England should start to raise interest rates in the coming months to reflect the stronger economy, Monetary Policy Committee member David Miles writes in The Daily Telegraph.

David Miles, one of the nine members of the Bank’s MPC that sets interest rates and one of its most dovish members, described the recovery as “resilient”, “”firm” and “sustainable”, and said it was increasingly likely he would vote to raise rates from a record low of 0.5% before leaving the committee next May.

Writing in the Telegraph, Miles said increases which stemmed from firmer UK growth was “good news” for the economy.

Miles said subdued inflation would enable policymakers to raise rates gradually. He said the UK would not see a repeat of the “eye-wateringly sharp” increases of the late 1970s or 1980s, when the Treasury implemented a series of rapid rate hikes in order to keep a lid on price rises.

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Source: Alliance News

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