Nearly Half Of Britons Expect Interest Rates To Rise In 1 Year: Survey

(RTTNews) - Nearly half of Britons surveyed by the Bank of England expect an interest rate hike in the next 12 months, the strongest outcome in more than three years.

The Bank of England/GfK NOP Inflation Attitudes Survey for August, released Friday, revealed that 49 percent of respondents expected the central bank to hike its record low interest rate over the next 12 months.

That was the highest ratio since the 55 percent logged in May 2011. In May this year, the share of those expecting a rate hike in a year was 42 percent.

The survey, held between August 7 and 15 among 2016 people, showed that the expected rate of inflation over the coming year was 2.8 percent versus 2.6 percent in May. Inflation expectations for two years climbed to 2.8 percent from 2.5 percent and the five-year expected figure rose to 3.4 percent from 2.9 percent.

Half of those surveyed found the Bank of England's 2 percent inflation target 'about right'. The ratio dropped from 53 percent in May. The survey also showed that public confidence regarding the central bank was broadly unchanged with the balance at +30 percent in August versus +31 percent in May.

Twenty percent of those survey felt higher interest rates would be 'best for the economy', unchanged from May.

Yesterday, the Bank of England left its key interest rate unchanged at 0.50 percent once again at its two-day monetary policy meeting after policymakers split on the decision last month for the first time since mid 2011.