A third of the public expect the cost of borrowing to rise over the coming year, while almost a half say they have felt the cost of higher interest rates on items such as mortgages and bank loans.
Around 33% of consumers say interest rates to climb over the next 12 months, according to the latest Bank of England inflation attitudes survey, up from 29% in August the last time the poll was taken.
It 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 public’s view on the cost of borrowing differs from the expectations of markets and Bank of England governor Andrew Bailey, who last week 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 next inflation figures are due on Wednesday with markets expecting the cost of living to rise to around 2.6% in November from 2.3% the month before.
The Bank’s rate-setting Monetary Policy Committee is expected to hold the base rate at 4.75% the following day.
Data firm Ipsos conducted the Bank’s survey interviewing around 2,000 adults between November 8 to 11.