UK public expectations for interest rate hike falls to record low level

William Turvill
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(FILES) Britain's Bank of England is pic
The Bank of England cut interest rates to 0.25 per cent in August (Source: Getty)

The proportion of British people expecting an interest rates rise in the next year has fallen to a record low, a Bank of England survey has shown.

The poll of more than 2,000 people aged 16 and over was conducted between 8 and 9 August, shortly after the Bank cut rates to 0.25 per cent.

Read more: As recession fears fade, was the Bank wrong to cut interest rates?

Some 21 per cent said they expected rates to be raised over the next 12 months – down from 41 per cent in May when the last survey was conducted. This was also the lowest rate since the survey began in 1999.

Meanwhile, 19 per cent said they expected the Bank to cut rates further in the coming year, up from five per cent in May. This was the highest percentage expected a cut since November 2008.

Read more: Janet Yellen to talk interest rates and Fed shake-up at Jackson Hole

Elsewhere, the poll found the public expects inflation in the coming year of 2.2 per cent, up from two per cent in May.

Inflation expectations for the longer term, in five years’ time, came in at three per cent, down from 3.4 per cent in May.

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