Possibly, summary statistics such as the jobless rate or factory utilisation rate are too crude to capture the true degree of slack.
The Bank noted in the report: "Not surprisingly, there is a wide range of views on the committee about the likely degree of slack.
The ultimate answer will depend on the evolution of the economy, particularly the degree of slack, the prospects for its absorption, and the broader inflation outlook".
The upshot is that most coal plants are operating at only 60% capacity – for the time being, there is a surprising degree of slack in the system.
"While the economy is growing, it is currently growing too slowly to significantly reduce the unemployment rate or stem disinflationary pressures created by the high degree of slack in the economy," he warned.
9.49am BST Some early reaction to the Bank minutes Shaun Richards (@notayesmansecon) Same as it ever was! #BoE Minutes " uncertainty about the degree of slack had risen on the month July 23 , 2014 Markit Economics (@MarkitEconomics) BoE voted 9-0 to keep rates unchanged.
Looking forward, although there are growing signs of economic recovery, we think the degree of slack in the economy will help push down CPI inflation close to the monetary policy committee's 2% target by the end of the year".
The committee said it was likely that the degree of slack in the economy is being absorbed more rapidly than the Bank had expected in May, when its forecasts were last updated.
In the United Kingdom, there have been further signs that a recovery is in train, although it remains weak by historical standards and a degree of slack is expected to persist for some time.
The bank said it decided to keep stimulus and the interest rate unchanged as "there have been further signs that a recovery is in train, although it remains weak by historical standards and a degree of slack is expected to persist for some time".
