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MPC’s Miles attacks hawks in war on rates
TENSIONS in the Bank of England’s rate setting committee heightened last night, after David Miles launched a thinly veiled attack on his ultra hawkish colleague Andrew Sentance.
Sentance recently said sterling’s exchange rate should be a “key area of focus” for the Bank’s monetary policy committee (MPC). But last night Miles described any link between sterling’s depreciation in 2007-08 and the Bank’s exceptionally loose monetary policy as “a strange interpretation of history.”
And he warned against Sentance’s suggestion of a rate hike, saying he remains “very sceptical” over such arguments.