- David Miles, BoE policy maker
Britain's economy has been growing robustly over the past year, while its labour market has been tightening considerably since the last summer. Nevertheless, the Bank of England keeps its monetary policy intact for a bit longer period than economists had been forecasting. Following the release of the August Inflation Report, which indicated a rather dovish stance of the central bank officials, the BoE's David Miles, considered as one of the most dovish MPC members, said that as long as inflation remains subdued and wage growth is weak, the BoE is no hurry to lift its benchmark interest rate.
Next week's publication of the minutes of the BoE's August policy meeting might show that at least one MPC member vote in favour of the interest rate hike, potentially making markets alert about a tightening of policy this year by the central bank. The second official GDP estimate is projected to show Britain's economy kept its pace during the April-June quarter. However, the second estimate this time will strip out GDP income data due to changes to U.K. National Accounts. The U.K. economy has been getting onto a stronger footing, with economists' expectations suggesting GDP growth should keep its pace in the second quarter by increasing 0.8%, which would be unchanged from the previous quarter.
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