Britons' Long-Term Inflation Expectations Slow: BoE/ Ipsos Survey

(RTTNews) - Britons' long-term inflation expectations slowed in August but their confidence on the Bank of England deteriorated, according to the quarterly Inflation Attitudes Survey conducted by Ipsos on behalf of the BoE.

Inflation for the longer-term, say in the five-year time is seen at 2.9 percent, which was slower than the 3 percent estimated in May, the survey showed Friday.

Meanwhile, respondents forecast one-year ahead inflation to come at 3.6 percent, up from 3.5 percent projected in the previous survey period.

Regarding the way the BoE is doing its job on setting interest rate to control inflation, the net satisfaction balance fell sharply to -21 percent from -13 percent. More survey respondents expect interest rate to rise over the coming twelve months. A net 63 percent said the rate will increase, up from 57 percent in May.

About 40 percent assessed that the inflation target was 'about right', which was up from 37 percent a quarter ago.

About 13 percent of respondents said higher interest rates would be the best for the economy, down from 16 percent in May. Meanwhile, 40 percent of respondents thought that interest rates should 'go down', compared to 37 percent in the preceding period. The survey was conducted between August 4 and 7.