Tuesday, January 29, 2013

Bank of England's Miles plays down need for remit change

LONDON (Reuters) - The Bank of England does not need to give more guidance on the direction of monetary policy, and suspending its inflation target could be justified only "in exceptional circumstances", a senior policymaker said on Monday.

David Miles, an external member of the Monetary Policy Committee, played down the need for the Bank to adopt the kind of longer-term guidance favoured by the Bank of Canada, whose governor, Mark Carney, will take the top job at the Bank in July.

"I think we are able in the current framework to give plenty of guidance about our thinking and how we see the economy evolving," he told the Evening Standard newspaper.

"I don't think it would be helpful for the MPC to say here is where policy is going to be for the next several months. If we did that there wouldn't be any point in having monthly meetings," he added.

Miles said that a growth target for the Bank - another idea that has been associated with Carney in the past - could only ever be an emergency measure.

"As a temporary measure in exceptional circumstances there may be things to be said for it. I think I would need to be convinced that there were obvious advantages it gave you that you couldn't have with what I would describe as our current regime of flexible inflation targeting," he said.

(Reporting by David Milliken and Olesya Dmitracova)

Source: http://news.yahoo.com/bank-englands-miles-plays-down-remit-change-131307571--business.html

rueben randle mike trout ryan broyles jerel worthy alshon jeffery miami heat bulls

No comments:

Post a Comment