LONDON, April 30 Bank of England policymaker
David Miles said that he expected inflation to be close to 2
percent by the end of this year, substantially below what the
central bank forecast in February.
"We are now back to slightly under 3 percent and I think it
will hover around this level for a good part of this year - but
it's more likely than not that as we go into next year,
inflation will be quite close to 2 percent," he said in an
interview with the Belfast Telegraph.
Inflation is currently 2.8 percent and the central bank
forecast in February that it would peak above 3 percent later
this year before easing slightly to just under 3 percent in
early 2014. It is not forecast to fall below its 2 percent
target until early 2016.
The central bank will publish new inflation forecasts in
May. Miles's views may not be representative as he is among the
minority of policymakers who back more quantitative easing asset
Miles also said that he expected the squeeze on Britons'
disposable incomes over the past four years to ease as inflation