Britons don’t think the Bank of England can hit its 2 per cent inflation target within the next five years, a survey found.
Research by the Bank yesterday showed that consumers said last month that prices will still be rising too fast in 2028.
The survey showed that on average Britons expected inflation ‘in the longer term’ – or five years’ time – to be running at 3.2 per cent.
In August consumers predicted the rate would drop to 2.9 per cent within five years.
The results suggested Britons do not think the central bank is doing enough to bring inflation back down to its 2 per cent target.
Struggle: The survey showed that on average Britons expected inflation ‘in the longer term’ – or five years’ time – to be running at 3.2 per cent
Inflation slowed to 4.6 per cent in October, below market expectations of 4.8 per cent and down from 6.7 per cent in September and August.
Consumers said they were unhappy with how the bank is setting interest rates to control rising prices.
The net satisfaction balance was negative 14 per cent, although that was an improvement on the negative 21 per cent recorded in August.
The Bank has raised interest rates to a 15-year high of 5.25 per cent but paused the hikes earlier this year after 14 consecutive increases.
Responding to the survey, 44 per cent of consumers said interest rates would rise again in the next 12 months, down from 63 per cent in August. Meanwhile, 29 per cent said they expected borrowing costs to be held over the next year, compared to 19 per cent in August.
The bank is expected to hold rates for a third meeting in a row next week.
But traders are betting on three cuts – of 15 basis points each – from the bank’s Monetary Policy Committee by the end of next year.
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