The Bank of England is having to take a view on high inflation expectations.

Firms’ long-term inflation fears are at their highest level since the end of 2023, a Bank of England survey revealed on Thursday, prompting the majority of Monetary Policy Committee (MPC) members to vote for interest rates to be held.

On an average reading in the three months to October, business leaders’ inflation expectations for the next three years crept up to their highest level.

One-year ahead expectations also failed to ease in further signs that firms are nervous about stubbornly high price growth for the foreseeable future.

The Bank’s monthly survey, which is called the “Decision Makers’ Panel”, uncovered the reason behind the latest MPC vote for interest rates to be held at four per cent.

While so

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