UK households see inflation pick-up, earlier BoE move

Following are the outcomes of a survey on UK inflation and interest rate expectations that hit the wires via Reuters:

• British households have raised their expectations for inflation to the highest level in eight months

• More than half of respondents expect a rise in the base rate over the coming year.

• The prospect of a rate cut was down from the survey-record high in March.

• British inflation has shown signs of rising gradually.

Most economists expect the BoE to raise interest rates only in late 2016 or in 2017, and it might cut them if the country votes to leave the European Union in June, something which could deliver a shock to the economy.