Fewer U.K. Consumers Expect Rates to Rise, BOE Survey Shows

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(Bloomberg) --

Britons are expecting a slightly slower inflation than a few months ago and fewer expect interest rates to rise over the coming year, a Bank of England survey published Friday showed.

Just 39% of respondents expected rates to rise over the coming year, down from 43% in August, the BOE said. Expectations of the rate of inflation over the coming year stood at 3.1%, down from 3.3% in August.

Officials at the U.K. central bank cut their forecasts for inflation last month, with external factors accounting for most of the downgrade. Policy makers including governor Mark Carney have stressed that rates may need to rise if Brexit goes smoothly, though in the wake of the U.K.‘s general election results, some economists say any resolution to the uncertainty surrounding Brexit may be short lived and that the BOE may need to cut rates next year.

The BOE survey is based on interviews with over 2,000 people throughout the U.K. at the beginning of November.

©2019 Bloomberg L.P.

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