BOE survey on inflation expectations run in August
1yr inflation exptectations 2.2% vs 2.0% in May
2yr 2.2% unch
5 year 3.0% vs 3.4% prior
19% of public expect interest rates to fall in the next 12 months vs 5% prior
21% expect rates to rise vs 41% prior
2177 people were surveyed just a few days after the August rate cut, so it's probably no surprise that many were leaning that way. The BOE has been warning that inflation could rise in the short-term due to the effect of the Brexit vote and the move in sterling. It puts them in a tough spot as inflation higher than expected will have some thinking that hikes will be needed to contain it. That said, the better gauge for inflation, in that instance, will be the core number.
