The results of the Bank of England/ Ipsos latest quarterly survey of public attitudes to inflation showed that they see inflation rising to 4.6% in the next 12 months vs. 4.3% expected in February 2022.  

Key takeaways

“Asked about expectations of inflation in the longer term, say in five years’ time, respondents gave a median answer of 3.5%, up from 3.3% in February 2022.”

“By a margin of 66% to 9%, survey respondents believed that the economy would end up weaker rather than stronger if prices started to rise faster, compared with 59% to 7% in February 2022.“

“When asked about the future path of interest rates, 15% said they expected rates to stay about the same over the next twelve months, compared with 16% in February 2022. 70% of respondents expected rates to rise over the next 12 months, up from 65% in February 2022.”

Market reaction

GBP/USD is holding the lower ground, unfazed by the above survey findings. At the press time, cable is trading at 1.2480, losing 0.08% on the day.