Consumer Fear Inflation
If you hadn’t noticed from dinner conversations, office chat, and television reports, Brits are increasingly becoming concerned over the rate of inflation. Apparently, the concern is enough to impact consumer confidence throughout the U.K., according to the most recent Consumer Barometer from Lloyds TSB, one of the four main high street banks in the U.K., the amount of people who expect interest rates to be higher twelve months from now as opposed to lower increased by two per cent in the past month.
Although the Bank of England has been on a trend of cutting rates or holding them the same for the past six months, January witnessed a rate increase. And according to chief economist at Lloyds TSB Corporate Markets, Trevor Williams, even if the Bank of England cuts the rate in February, it might not be enough to counter the widespread consumer concerns.
Mr. Williams states, “As far as consumers are concerned, any respite granted in interest rates today will be short-lived. Even so, if we do see a cut this will ease the burden of interest payments and as such will help boost economic activity.”