Bank of England Inflation Attitudes Survey - November 23 - reaction

The Bank of England has just published its quarterly Inflation Attitudes survey for November 2023. Key points below. Any thoughts, send them across ASAP as this story is BREAKING.

Question 1: Asked to give the current rate of inflation, respondents gave a median answer of 7.5%, down from 8.6% in August 2023.

Question 2a: Median expectations of the rate of inflation over the coming year were 3.3%, down from 3.6% in August 2023.

Question 2b: Asked about expected inflation in the twelve months after that, respondents gave a median answer of 2.8%, unchanged from 2.8% in August 2023.

Question 2c: Asked about expectations of inflation in the longer term, say in five years’ time, respondents gave a median answer of 3.2%, up from 2.9% in August 2023.

Question 3: By a margin of 69% to 6%, survey respondents believed that the economy would end up weaker, rather than stronger, if prices started to rise faster, compared to 73% and 5% respectively in August 2023.

Question 4: 41% of respondents thought the inflation target was ‘about right’, up from 40% in August 2023. The proportions saying the target was ‘too high’ or ‘too low’ were 32% and 11% respectively.

Question 5: 78% of respondents said that interest rates on things such as mortgages, bank loans and savings had risen over the past 12 months, from 81% in August 2023. Meanwhile, 3% of respondents thought that interest rates had fallen over the past 12 months, unchanged from August 2023.

Question 6: When asked about the future path of interest rates, 44% of respondents expected rates to rise over the next 12 months, down from 63% in August 2023. 29% said they expected rates to stay about the same over the next twelve months, up from 19% in August 2023.

Question 7: Asked what would be ‘best for the economy’ – higher interest rates, lower rates or no change – 11% thought rates should ‘go up’, down from 13% in August 2023. 40% of respondents thought that interest rates should ‘go down’, unchanged from August 2023. 29% thought interest rates should ‘stay where they are’, up from 26% in August 2023.

Question 8: When asked what would be ‘best for you personally’, 21% of respondents said it would be better for them if interest rates were to ‘go up’, down from 25% in August 2023. 35% of respondents said it would be better for them if interest rates were to ‘go down’, up from 34% in August 2023.

Question 14: Respondents were asked to assess the way the Bank of England is ‘doing its job to set interest rates to control inflation’. The net satisfaction balance, the proportion satisfied minus the proportion dissatisfied, was -14%, up from -21% in August 2023.