BoE's Miles says UK economy to pick up - report
January 29, 2013 1:00 PM EST
David Miles, a member of the Bank of England's monetary policy committee, told The Independent on Tuesday that productive capacity could reduce with continuing weak demand, but he believed British economic growth would pick up in 2013.
"The danger of remaining in a situation where growth and demand are very anaemic and weak is that you actually reduce the productive capacity of the economy", the newspaper quoted Miles as saying.
On the wider economic outlook he said: "I'm a bit more optimistic that growth is going to pick up ... but I suspect that it will still remain for the next year or so beneath what you might call the average cruising speed for the British economy.
"If that is true, I think we will have growth which will not reduce the amount of spare capacity or slack in the economy, and I think domestically generated inflation pressures remain pretty muted."
Miles is advocating more quantitative easing, according to the Independent, because he believes there is still room for a weak economy to grow without increasing inflation.
He described the printing of money as a "very powerful tool" and is at the "optimistic end of the spectrum" as to its effectiveness.
Britain's economy shrank by 0.3 percent in the fourth quarter of 2012 prompting fears of a triple dip recession.
(Reporting By Costas Pitas; Editing by Eric Meijer and Christopher Wilson)
Most Popular Slideshows
- Prince Harry & Camilla Thurlow Getting Serious, St. Tropez Holiday Before The Prince’s 30th Birthday [PHOTOS]
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
- Angelina Jolie & Brad Pitt Heads to Malta For New Movie After A Whirlwind French Wedding [PHOTOS]
- Top 5 Richest Tennis Athletes
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Apple iWatch is iPhone 6 Accessory on Sept 19 Release Date: 6 Confirmed Specs & Features
- Sept 19 iPhone 6 Release Date Firms Up as iWatch Rollout Delayed to Jan 2015 – Reports
- Canada Vs Russia War Erupts Via Twitter on Russia-Not Russia Maps
- James Foley Torture Involves CIA Waterboarding Technique
- Malaysia Airlines to Axe 4,000 Employees, Including CEO; Suspends Trading of Shares
- West Looks Divided in Tackling Russian Invasion In Ukraine
- Amazon Threatened by Google’s Partnership with Barnes and Noble