Over a third of Britons expect interest rates to rise over the next 12 months despite market bets of several cuts starting in June.
In a survey conducted for the Bank of England, when asked about the future path of interest rates, 36% of respondents expected rates to rise over the next 12 months, down from 44% in November 2023.
Some 26% said they expected rates to stay about the same over the next twelve months, down from 29% in November 2023.
When it came to inflation, the British public’s expectations over the coming year have fallen to a near three-year low.
Britons are now expecting price growth in the year ahead to fall to 3%, while in November they had expected it to move to 3.3%.
This is the lowest level in nearly three years and is closer to the long-term average, and will bolster the case for interest rate cuts this year.
