Two thirds of Britons expect BoE rate rise by June 2022
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© Reuters. FILE PHOTO – A bird passes The Bank of England, City of London (Britain), December 12, 2017. REUTERS/Clodagh KilcoyneLONDON, (Reuters) – A record 2/3 of British households anticipate the Bank of England raising interest rates in the next 6 months. However, the Omicron variation has seen a drop in that expectation, a poll showed Wednesday.
Lewis Cooper, an economist from IHS Markit, said that although the pandemic-related worries have affected the results, household interest rate expectations remain at levels at which the Bank of England has historically raised them.
Ipsos MORI, market researchers in Britain, surveyed approximately 1,500 people between Dec. 2-6.
The BoE was expected to increase its main interest rates from the record-low 0.1% in six months by 67%, an increase of 66% from November’s poll and the largest percentage since 2013.
The proportion of those expecting a change within the next 3 months dropped from 44% to 43%, while only 12% are anticipating a rise in Thursday’s announcement by the BoE on its December policy decisions.
The BoE misjudged many professionals investors last month when it held interest rates at their current levels and then decided to wait until more evidence was available on the effects of ending the government’s job furlough program.
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