LONDON Feb 27 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.