A growing number of people think a rate cut would benefit the economy, according to the Bank of England’s quarterly inflation survey.
A total of 42% of respondents said a cut in interest rates would be best for the economy. This is a slightly higher number than the 41 percent of respondents who gave this answer in February.
Accordingly, the number of people who thought maintaining rates would be best for the economy fell slightly – from 25% in February to 24% in May. The share of people who thought a rate increase would benefit the economy remained the same at 10%.
The base rate has remained at a 16-year high of 5.25% since August last year. The last time the central bank cut interest rates was in March 2020.
When asked about the future path of interest rates, 34% of respondents expected interest rates to rise over the next 12 months, up from 36% in February 2024. Overall, 25% of respondents said they expected interest rates to be ‘about the same to stay’. ‘ in the next twelve months.
More than six in ten respondents (64%) said they had seen interest rates on mortgages, loans or savings accounts rise in the past twelve months. However, this was lower than the previous quarter, when 69% reported personally experiencing a rate increase for these financial products.