Andrew Sentance, an external member of the Monetary Policy Committee at the Bank of England, on Tuesday said policymakers should be wary of inaccuracies in measurements of spare capacity during policy making.

At a Confederation of British Industry lunch in Suffolk, UK, Sentance said: "The relationship between spare capacity and inflationary pressures may be much more complex than the simple model suggests – particularly in the services sector, which now dominates the UK economy."

Sentance also