The central bank’s quarterly Inflation Attitudes survey of 2,238 UK adults conducted between 5 and 8 August found that a quarter wanted rates to fall while 21 per cent wanted them to stay as they were. The survey was taken a day after the base rate rose to 1.75 per cent alongside the warning of a possible recession.
When asked how BoE was ‘doing its job to set interest rates to control inflation’, the respondents’ score reading was negative seven per cent, down from negative three per cent in May suggesting a worsened sense of satisfaction.
Some 31 per cent of respondents said the central bank’s two per cent target for inflation was too high, while 32 per cent said it was ‘about right’. Just over a fifth felt it was too low.
When asked which direction would be best for the economy, 30 per cent of respondents said an increase, up from 28 per cent who said the same in May. Almost a quarter (24 per cent) said rates should go down, up from 22 per cent in May. A further 26 per cent said they should stay as they are, down from 28 per cent previously.
Consumers hit by mortgage and price rises
As for the rates on mortgages, bank loans and savings, 73 per cent noticed they had gone up over the last 12 months.
Looking ahead, just over a third expected rates to rise by ‘a lot’ while 41 per cent predicted a small uplift. Just 11 per cent of people thought they would stay the same.
Well over half (58 per cent) of respondents said prices had gone up over the last 12 months by at least five per cent, and two-fifths expected them to rise further by the same margin.
Further ahead, a fifth feel prices will fall by five per cent in two years.
Two-thirds said if prices were to keep rising, Britain’s economy would weaken. Just a tenth felt this would make the economy stronger.
‘By no means a glowing endorsement’
Myron Jobson, senior personal finance analyst at Interactive Investor, said: “The latest survey shows expectation for inflation for the coming year have grown since the last survey. The public also believes that inflation will continue to remain high beyond 2023 – although lower than previously thought.
“The Bank bravely asks the public to judge its effectiveness at controlling interest rates, and their response is by no means a glowing endorsement.”
He added: “It is difficult for many consumers to look beyond the impact rising prices are having on their finances today. Inflation is hitting everyday expenditure the most, from the amount we pay for gas and electricity to the food we put on our tables.
“It is interesting to note that the survey found that almost a third of respondents said it would be better for them if interest rates were to ‘go up’, but a quarter of the sample said the opposite, indicating that cost of living experiences are polarised.
“The results turn up the heat on the Monetary Policy Committee, which is expected to bump interest rates further at its meeting next week.”
