Public discontent with the Bank of England’s interest rate setting is growing, as measures to control inflation have fallen short of expectations, according to the Bank of England/Ipsos Inflation Attitudes Survey.
The dissatisfaction index stands at -13%, a significant drop from February’s -4%.
The survey reveals that 57% of respondents expect interest rates to rise over the next year, with 20% anticipating them to remain the same.
Yet, 37% believe a rate cut would be most beneficial for the economy, whereas 25% think rates should remain steady and 16% favor an increase.
As for personal finances, 31% of those surveyed feel that a rate cut would be most beneficial, while 26% consider a rate increase to be in their best interest.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “More people are losing patience with rate setters at the Bank of England, after a year and a half of ever-increasing interest rates have failed to bring inflation under control.”
Coles highlighted the public sentiment that inflation is causing significant harm to the economy, with 69% of respondents expressing this concern. Despite this, the majority of people expect interest rates to rise over the next year, with an average expectation of a 3.5% inflation rate in the coming year.
Coles attributes the public frustration to the failure of rising rates to swiftly impact prices. With around half of mortgage holders experiencing no rate change since the Bank of England initiated the hiking cycle, demand has remained robust, keeping prices high.
Despite a growing public sentiment for rate cuts, Coles warned that disappointment is likely. “In fact, rates are unlikely to fall before 2024, and there’s every chance they’ll linger at this level for longer. It means that frustration with higher rates is unlikely to ease soon,” she concluded.
