According to the latest Bank of England (BoE) Monthly Decision Maker Panel (DMP) survey released on Thursday, DMP members expected CPI inflation to be 5.8% one-year ahead, down from 5.9% in February.

Additional findings

“Three-year ahead CPI inflation expectations ticked up from 3.4% in February to 3.5% in March.”

“Over the next year, businesses expected their output prices to increase by an average of 5.3%, down 0.1 percentage points from the previous month. “

“The three-month average also fell by 0.1 percentage points to 5.5%, which is now 1.1 percentage points below its peak from September.”

“Expected year-ahead wage growth fell by 0.1 percentage points to 5.6% in March. Realised annual wage growth fell by a similar amount to 6.5%.”

Market reaction

GBP/USD was last seen trading at around 1.2450, modestly flat on the day.