-David Miles, Bank of England policy maker
Bank of England policymaker David Miles said he had seen a reasonable case to vote for an interest rate hike at the policy meeting last week, but arguments appeared to be inconclusive. Miles eventually voted to maintain the benchmark rate unchanged in August but admitted the decision was not an easy one. Miles said a month earlier that the case for a rate increase was stronger now than at any time in his six-year long rate-setting career, given the UK economy's strength and the falling margin of slack in the labour market to keep inflationary pressures at bay. However, the recent developments including the Pound's strength suggested weaker inflation in the near term. Yet, Miles urged his colleagues to start gently raising borrowing costs sooner rather than later to keep future increases smooth and steady.
Miles was one of eight officials on the nine-member BOE panel to vote to keep rates on hold in August. Ian McCafferty was the sole dissenter, voting for an immediate hike in the central bank's benchmark rate. McCafferty claimed a rate increase was required to keep inflation in check and to ensure that future rate lifts are smooth and gradual. In the BoE's quarterly inflation report forecasts showed that policy makers predict annual inflation to climb back to its 2% goal by the third quarter of 2017 provided that interest rates rise in line with expectations in financial markets.
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