U.K. Households' Expectations for Higher Interest Rates Slips

(Bloomberg) -- Fewer British households expect an interest-rate increase in the next twelve months, according to a Bank of England survey.

In May, 51 percent of respondents to a BOE survey expected rates to rise over the next year, down from 58 percent in February, a report published Friday showed. The central bank questioned 2,159 people between 4 and 8 May.

Governor Mark Carney said last month that, while investors have bemoaned the BOE’s communication surrounding rates, the wider public still understood the bank’s key message that borrowing costs are headed gradually higher.

Household expectations for inflation in the coming year were unchanged at 2.9 percent, the survey showed.

--With assistance from David Goodman.

To contact the reporter on this story: Jill Ward in London at jward98@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Brian Swint

©2018 Bloomberg L.P.