Markets are wrong to assume the Bank of England will keep base interest rates at an "extraordinarily low level for an extended period," a former member of the bank's decision-making council told CNBC on Thursday.
David Miles spoke to CNBC shortly before the Bank of England gave its latest monetary policy update, having announced a wave of stimulatory measures in August to boost the economy after the shock of the Brexit vote.
On Thursday, the Bank of England opted to hold base interest rates at record lows and to maintain the size of its newly enlarged bond-buying program. The bank's Monetary Policy Committee (MPC) voted unanimously in September to hold the base rate at 0.25 percent, to which it was cut in August. It also voted unanimously to maintain the size of its corporate bonds purchases at up to £10 billion ($13.2 billion) and government bond purchases at £435 billion.
"Keeping interest rates at an extraordinary low level for an extended period is not a great place to be. I don't think that is where we are likely to be in the U.K.," Miles told CNBC.