David Miles broadens split at Bank of England

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FRESH signs of a split at the Bank of England emerged yesterday after a senior policymaker played down the need for remit change.

David Miles, an external member of the monetary policy committee, said the Bank did not need to give more guidance on the direction of monetary policy, and suspending its inflation target could be justified only “in exceptional circumstances”. He argued against the need to adopt the kind of longer-term guidance favoured by the Bank of Canada, whose governor, Mark Carney, will take on the top job at the UK central 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,” said Miles.

He added that a growth target for the Bank – another idea that has been associated with Carney – could only ever be an emergency measure.