David Miles say UK economy will pick up

David Miles, a member of the Bank of England's monetary policy committee, believes growth in the UK economy will accelerate slowly over the coming year.

"I'm a bit more optimistic that growth is going to pick up," he told The Independent in an interview on Tuesday.

Despite that, he thinks it will still remain "beneath ... the average cruising speed for the British economy".

"I think we will have growth which will not reduce the amount of spare capacity or slack in the economy, and I think domestically generated inflation pressures remain pretty muted," he said.

Mr Miles says weak demand could weigh on productive capacity.

"The danger of remaining in a situation where growth and demand are very anaemic and weak is that you actually reduce the productive capacity of the economy", he told the newspaper.

Mr Miles wants more quantitative easing because he says there is still room for a weak economy to grow without increasing inflation.

He described money printing as a "very powerful tool" and is at the "optimistic end of the spectrum" as to its effectiveness.

Britain's economy shrank by 0.3pc in the fourth quarter of 2012 prompting fears of a triple dip recession.


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