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More Britons expect interest rates to rise over next year - BoE survey

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More Britons expect interest rates to rise over next year - BoE survey
Pedestrians shelter under umbrellas in front of the Royal Exchange and the Bank of England, in London, Britain August 16, 2018. REUTERS/ Hannah McKay   -   Copyright  Hannah Mckay(Reuters)
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LONDON (Reuters) – The proportion of British people expecting interest rates to rise over the next 12 months increased in August, following the Bank of England’s decision to raise rates at the start of the month, a BoE survey showed on Friday.

Some 58 percent of people expect a rate rise over the next 12 months, up from 51 percent in May when the central bank shied away from a rate increase which had been widely expected in financial markets.

Last month, after the BoE increased its Bank Rate to 0.75 percent from 0.5 percent, BoE Governor Mark Carney said market expectations of roughly one 25 basis point rate rise a year in future were a reasonable rule of thumb for households.

Public inflation expectations were little changed from May.

The BoE survey was conducted by market research company TNS between Aug. 3 and Aug. 7 and interviewed 2,134 people.

(Reporting by David Milliken, editing by Andy Bruce)

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