UK Inflation Expectations For Year Ahead Unchanged From November - BoE

LONDON (Alliance News) - Expectations over the path of UK inflation in the year ahead remained ...

Alliance News 8 April, 2019 | 10:20AM
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LONDON (Alliance News) - Expectations over the path of UK inflation in the year ahead remained stable, the quarterly Bank of England/TNS Inflation Attitudes Survey showed on Monday.

The survey, conducted in February, showed the median inflation expectation for the year ahead was 3.2%, the same as in November.

Asked to give the current rate of inflation, respondents gave a median answer of 2.9%, down from 3.1% in November. The UK consumer price inflation rate in February was 1.9% on an annual basis, below the BoE's 2% target.

By a margin of 56% to 6%, survey respondents believed the economy would end up weaker rather than stronger if prices started to rise faster, compared with 53% to 9% in November.

When asked about the future path of interest rates, 22% of people asked said rate might stay about the same over the next twelve months, up from 19% in November. Just under half, 47%, said they expected rates to rise over the next year, whereas 53% had expected this in November.

On what would be "best for the economy", 17% thought rates should rise, 17% thought they should be lower and 37% thought they should remain where they are now. In November, 19% of people asked thought rates should hiked, while 19% thought they should be lowered and 34% were of the opinion that they should be unchanged.

By Lucy Heming; lucyheming@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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