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

LONDON Thu Feb 27, 2014 1:38pm EST

Related Topics

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.

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

Find your dream retirement town

Florida? Hawaii? Reuters has teamed up with Zillow to give you the power to customize a list of your best places to retire.  Video | Full Article