5 Dec 2014
Inflation expectations decline in the UK
FXStreet (Mumbai) - Bank of England’s latest quarterly survey of public attitudes to inflation, undertaken between 6 and 11 November 2014, shows a decline in inflation expectations in the next twelve months to 2.5%, compared with 2.8% in August.
Meanwhile, inflation expectations in the long term – 5 years – declined to 3.0%, compared with 3.4% in August. The majority of the respondents also believed the economy would end up weaker if the inflation starts rising at a faster rate.
The survey also highlighted a decline in the interest rate hike expectations. 37% of respondents said rates might stay about the same over the next twelve months, up from 29% in August, while 37% of respondents expected rates to rise over the next 12 months, down from 49% in August.
Meanwhile, inflation expectations in the long term – 5 years – declined to 3.0%, compared with 3.4% in August. The majority of the respondents also believed the economy would end up weaker if the inflation starts rising at a faster rate.
The survey also highlighted a decline in the interest rate hike expectations. 37% of respondents said rates might stay about the same over the next twelve months, up from 29% in August, while 37% of respondents expected rates to rise over the next 12 months, down from 49% in August.