Monetary Policy Committee (MPC) external member David Miles prefers the current regime of flexible inflation targeting as opposed to alternatives such as setting a growth target, according to a published report.

Likewise, the report says that he does not see the need to modify the central bank´s current communications policy so as to provide more time-specific policy guidance.

Nevertheless, from his remarks it would seem that in moments of crisis he might support putting greater emphasis on stimulating growth, according to The Evening Standard.

Miles said: "As a temporary measure, in exceptional circumstances, there may be things to be said for it. I think I would need to be convinced that there were obvious advantages it gave you that you couldn't have with what I would describe as our current regime of flexible inflation targeting."

He added that he was "open to the idea that [the growth target] could have advantages ... I draw a distinction between it as a possible temporary place to be in an emergency versus 'this is now the new permanent remit for the central bank'."

Mr.Miles, however, does not seem to have broached the subject of how correct it might be for the current inflation target to be revised slightly higher or, alternatively, to allow the current 'overshoot' in inflation to continue and by how much, even if only in a transitory manner.

AB

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