Miles Says U.K. Economic Slack May Exceed BOE Main Forecast
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The U.K. economy probably has more spare capacity than the Bank of England’s main calculations show, policy maker David Miles said, highlighting a key area of divergence among officials.
Miles, speaking two days before minutes of the Monetary Policy Committee’s February meeting give more clarity on its thinking, said the amount of slack is “toward the upper end” of the 1 percent to 1.5 percent of gross domestic product estimated by the BOE in its Inflation Report on Feb. 12. “It’s possible that there is more than that,” he said.