BoE's Miles says rates unlikely to return to pre-crisis average

LONDON Thu Feb 27, 2014 1:38pm EST

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LONDON Feb 27 (Reuters) - The financial crisis has transformed the way people view risk so much that Bank of England interest rates will likely be below their historical average from now on, a BoE policymaker said on Thursday.

David Miles, a member of the BoE's Monetary Policy Committee, said the "new normal" for rates would likely reflect how households, firms and investors attach a higher probability to financial crises and economic downturns than in the past.

"The new normal for monetary policy will probably involve setting Bank rate on average at a lower level than before the crisis," Miles said in a speech in London.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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