Third of consumers expect borrowing costs to increase

A third of the consumers expect the cost of borrowing (around 33%) of consumers say interest rates to climb over the next 12 months, according to the latest Bank of England inflation attitudes survey, this up from 29% in August the last time the poll was taken.

The data also found that 45% of the public said that interest rates on things such as mortgages, bank loans and savings had risen over the past 12 months, although this is down from 55% in August.

The consumers view on the cost of borrowing differs from the expectations of markets and Bank of England governor Andrew Bailey, who has stated recently that said he expects four 0.25% cuts next year, moving the base rate from its current 4.75% mark.

When the public was asked how the Bank of England is ‘doing its job to set interest rates to control inflation,’ the central bank rated a net satisfaction balance, of minus-1%, down from 4% in August.

The current rate of inflation stands at 2.3% and it is expected that the Bank’s rate-setting Monetary Policy Committee is expected to hold the base rate at 4.75% the following day.