BOE DMP survey: Businesses expect higher rates to lead to lower investment, employment

The latest survey conducted by the Bank of England (BoE) decision maker panel (DMP) showed that “businesses expect higher interest rates to lead to lower investment and employment,” per Reuters.

Key findings

Private-sector output price inflation 7.2% in November vs 7.8% in October.

Expected year-ahead output price inflation 5.7% in November, down 0.5 pp from October.

Looking ahead, DMP members expected cpi inflation to be 7.2% one-year ahead, down from 7.6% in October.

Recruitment difficulties are reported to have begun to ease.

Overall business uncertainty was slightly down in November.