Post by account_disabled on Feb 25, 2024 6:12:35 GMT
The British public's confidence in the Bank of England's approach to tackling inflation has fallen to a record low, according to official data published days before policymakers are set to vote on a possible 15th consecutive interest rate rise. In August, 40 percent of Britons were dissatisfied with the way the central bank was doing its job of setting interest rates to control the pace of price increases, according to an internal survey published on Friday. With just 19 per cent of people satisfied with the Bank of England's performance, net satisfaction fell to -21 per cent, down from -13 per cent when the question was last asked in May and the lowest reading since records began.
The findings will bolster markets' expectation that the Bank of England's Monetary Policy Committee will raise interest rates by 0.25 percentage points to 5.5 percent next Thursday, which would be the Job Function Email Database highest in 15 years. Paul Dales, an economist at consultancy Capital Economics, said the fact that public dissatisfaction was not receding with lower inflation “would imply that rising inflation may have stripped the Bank of England of some of its credibility”. "That could mean that interest rates need to stay high for longer in order to curb inflation expectations," he added. You are viewing a snapshot of an interactive chart.
This is most likely because you are not logged in or JavaScript is disabled in your browser. In July, UK consumer prices rose at an annual rate of percent, down from percent in June and a high of 11.1 percent in October last year, but still higher. three times the Bank of England's target of 2 percent and the highest in the G7. Bank of England Governor Andrew Bailey, Bank of England Chief Economist Huw Pill and Sir Jon Cunliffe, outgoing deputy governor for financial stability, have indicated in recent weeks that further rises in interest rates may not be necessary. interest. But Catherine Mann, who also sits on the MPC, said this week that “keeping rates constant at the current level risks allowing inflation to persist further.
The findings will bolster markets' expectation that the Bank of England's Monetary Policy Committee will raise interest rates by 0.25 percentage points to 5.5 percent next Thursday, which would be the Job Function Email Database highest in 15 years. Paul Dales, an economist at consultancy Capital Economics, said the fact that public dissatisfaction was not receding with lower inflation “would imply that rising inflation may have stripped the Bank of England of some of its credibility”. "That could mean that interest rates need to stay high for longer in order to curb inflation expectations," he added. You are viewing a snapshot of an interactive chart.
This is most likely because you are not logged in or JavaScript is disabled in your browser. In July, UK consumer prices rose at an annual rate of percent, down from percent in June and a high of 11.1 percent in October last year, but still higher. three times the Bank of England's target of 2 percent and the highest in the G7. Bank of England Governor Andrew Bailey, Bank of England Chief Economist Huw Pill and Sir Jon Cunliffe, outgoing deputy governor for financial stability, have indicated in recent weeks that further rises in interest rates may not be necessary. interest. But Catherine Mann, who also sits on the MPC, said this week that “keeping rates constant at the current level risks allowing inflation to persist further.