Miles: rates to stay below 3pc
EVEN when the economy has fully recovered interest rates could stay below three per cent, the Bank of England’s David Miles said yesterday.
The monetary policy committee member said rates could stay low without pushing up inflation, because of the damage caused to the economy in the financial crisis.
“For an extended period we might expect the equilibrium policy rate to be as much as two per cent, and conceivably a little more, below what we used to think of as normal,” he said at Queen Mary College, London.