Paul Tudor Jones sees potential market rally after late October
Investing.com -- U.K. public inflation expectations have risen across all time horizons, according to the Bank of England’s latest quarterly survey conducted by Ipsos.
The survey, carried out between August 8 and 12, showed median expectations for inflation over the coming year increased to 3.6%, up from 3.2% in May 2025.
Expectations for the following 12 months rose to 3.4% from 3.2%, while longer-term inflation expectations for five years ahead climbed to 3.8% from 3.6%.
When asked about the current rate of inflation, respondents gave a median answer of 4.8%, slightly higher than the 4.7% reported in the previous survey.
Public perception of the Bank of England’s performance has declined, with net satisfaction dropping to 2% from 6% in May. The proportion of respondents who believe the inflation target is "about right" fell to 38% from 41%.
The survey revealed mixed views on interest rates, with 33% of respondents expecting rates to rise over the next 12 months, unchanged from May. However, 26% anticipated rates would stay the same, up from 21%, while 29% expected rates to decline, down from 34% in the previous survey.
Regarding what would be best for the economy, 14% thought interest rates should increase (up from 12%), while 33% believed rates should decrease (down from 37%). When asked about personal impact, 28% said higher rates would be better for them personally, while 29% preferred lower rates.
By a margin of 69% to 6%, respondents believed the economy would end up weaker rather than stronger if prices started to rise faster, compared to 67% and 5% respectively in May.