LONDON (MNI) – It would be presumptuous to assume that an
announcement of more quantitative easing by the Bank of England Monetary
Policy Committee at its February meeting is a “done deal”, MPC Member
David Miles told Reuters in an interview.
“It is a presumptuous to assume it is a done deal. Given that I am
not entirely certain how I will vote myself I am not going to speak for
the other eight people,” Miles said.
Reuters said that Miles was now more confident that inflation would
fall into line with the BOE’s November forecast, which showed inflation
at 1.3% in 2 years time even on the basis of stg275 billion of QE and
Bank Rate at 0.5% – suggesting to many analysts that more QE would need
to be done.
“It remains highly likely that inflation will continue to fall and
move back to the target level and quite possibly drop beneath it as you
move through this year and into next year,” he said.
Inflation is now on a “pretty steep” downward path, Miles said.
–London newsroom 0044 20 7862 7492; email: ukeditorial@marketnews.com
[TOPICS: M$$BE$]