Bank of England and MPC member David Miles speaks exclusively to Mortgage Strategy magazine
As we head to the MPC minutes later David Miles makes one of the last comments on interest rates ahead of that.
- Time of policy normalisation is coming
- Bank rate will start rising over next few years but will be gradual
- Seems very likely that inflation will move back up to target quite sharply towards the end of the year, or start of next year
- Was a difficult decision to keep interest rates low in 2011 when CPI was at 5.25%
- Was the right decision to hold off raising rates in 2011
Not overly hawkish remarks compared to his last outing but this snippet might be telling
"Miles has written in past about the potential for becoming the first MPC member to leave the committee having never voted to change interest rates, saying it could be embarrassing when his grandchildren ask him what he did at the Bank during such turbulent times. His language about any rate rise happening "over the next few years" seems to suggest this record will stay intact.
But, not surprisingly, he is unwilling to let the cat out of the bag. Any votes for change from July's committee meeting will be published in the minutes this week and August's MPC meeting will be Miles' 75th and last.
"I'm sure I'll have something to tell the grandchildren. What it'll be, we'll have to wait and see. It's never too late."
Perhaps a little clue there from one of the biggest doves on the MPC and who has his last meeting next month before he departs. You can read the full article from Mortgage Strategy here
