Thursday, March 13, 2008
Inflation 5%? This is what most people (except Darling) think!
Public expectations of future inflation have reached the highest level on record according to a BoE survey; this will make the BoE reluctant to cut interest rates. People thought prices had risen 3.9 per cent over the last year and nearly a third thought the current inflation rate was higher than 5 per cent. Opps does nobody believe Darling's CPI figure of 2.1%? Despite market expectations that the BoE will lower interest rates over the next year, 43 per cent of respondents thought interest rates would rise.