BoE/Ipsos Quarterly Attitude Survey (Aug): 1-year ahead 3.2% (prev. 4%), 2-year ahead 2.9% (prev. 3.5%), 5-yer ahead 3.2% (prev. 3.9%)

The MPC has historically treated this series as a key gauge of whether elevated inflation is embedding into wage and price-setting behaviour, so falls of this kind have tended to sit in the dovish column of the reaction function, particularly where the long horizon also moves and de-anchoring concerns recede. The distinction worth drawing is between expectations falling because realised inflation fell, which is mechanical and largely priced, and expectations falling ahead of the data, which carries more signal for the policy path. Household surveys of this type have tended to be noisier and slower-moving than market-based measures, so the read-across to gilt pricing has usually come through the MPC's own rhetoric at subsequent meetings rather than the print itself. The follow-ons are whether Bank commentary cites the survey explicitly, how it interacts with the wage and services inflation prints that dominate the domestic debate, and whether the next quarterly edition confirms the move. As a quarterly series, one observation rarely shifts the front end on its own; the sequence matters more than the point estimate.