11 September 2015, 17:51  Bank of England expect interest rates to rise over the next 12 months

Half of Britons surveyed by the Bank of England expect interest rates to rise over the next 12 months, which was the strongest share in four years, results of a quarterly survey showed Friday. Meanwhile, a BoE policymaker hinted that interest rates may need to be hiked sooner than thought. The Bank of England/GfK Inflation Attitudes survey found that 50 percent of respondents expected rates to climb over the next 12 months versus 38 percent in May. The balance was the biggest since the May 2011 survey's 55 percent. On Thursday, the BoE policymakers kept the bank rate unchanged at a record-low 0.50 percent in a 8-1 vote and judged it premature to conclude that overseas events, especially those in China, had a huge adverse impact on the British economy. The bank is widely expected to raise the interest rate in 2016, something policymakers have also signaled. BoE policymaker Kristin Forbes said in a speech on Friday that a rate hike may be needed sooner than thought, citing the possibility that recent strength in the sterling may have less drag on inflation. Forbes said currency movements are a key factor that has allowed the MPC to keep interest rates on hold, despite the solid recovery and amid concern of inflation overshooting the 2 percent target. "How sterling's most recent appreciation, and any future currency movements, affect prices will be a critically important determinant of when is the appropriate time to begin raising interest rates," she said.

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