Ominous signs as inflation expectations rise

The latest revelations are contained in the BoB’s Business Expectations Survey (BES) released this week which samples the opinions of a cross-section of firms about the business environment from the second quarter of the year and beyond.

In raising interest rates by 101 basis points in April and June, the BoB said the adjustments were needed to manage inflation expectations in the economy, noting the first quarter BES had shown worrying expectations among local firms.