The latest survey of the masses from the Bank of England
The BOE have just released their latest inflation survey and it's seen expectations rising for both inflation an interest rates.
1yr inflation exp 2.8% vs 2.2% in Aug
2yr 2.5% vs 2.2% prior
5yr 3.1% vs 3.0% prior
12m rate rise exp 41.0% vs 21.0% prior
28.0% say rates to remain the same over next 12m vs 36% prior
8.0% see a cut coming in the next 12m vs 19% prior
When talking about rates for loans, mortgages and savings, 20% thought rates had gone up over the last 12m vs 14% in August, when the BOE actually cut rates. 29% thought they had fallen vs 36.0% prior.
The higher inflation expectations will be welcomed by the BOE, though they won't want them running to far higher.
