Carney wins over Britons if not the markets The Bank's three-monthly survey of the public's inflation expectations showed Mr Carney's pledge to hold rates at 0.5pc at least until unemployment has already had an effect on households. Britons now believe both inflation and interest rates will be lower than they did in May. Mr Carney will take some respite from the favourable public reaction to his "forward guidance," as markets have largely ignored it. On August 7, when the policy was launched, the Bank signalled that rates would remain at 0.5pc until late 2016. Markets, though, now believe the first rise could come as early as late 2014, reflecting the unexpected speed of the recovery. The Bank's Inflation Attitudes survey, conducted in the five days following "forward guidance," found that only 29pc of respondents expected rates to rise over the next 12 months - the lowest level since November 2008 and the fourth lowest in the survey's 14-year history. In May, 34pc of respondents expected rates to rise in the year ahead. Inflation expectations have also dropped. Average expectations over the coming year are for inflation to be 3.2pc, compared with 3.6pc in May, and for inflation to be 3pc over the following year rather than 3.3pc. Inflation is currently 2.8pc. Last month, Mr Carney sought to downplay the markets disregard of forward guidance, by drawing attention to the real borrowing costs of households and businesses. He said: "Movements in longer-term market interest rates are certainly relevant, but what matters most to you is what actually happens to Bank Rate, now and in the future. That is because the interest rates on 70pc of loans to households and more than 50pc of loans to businesses are linked to Bank Rate. And it is the Bank of England that controls that rate. The survey also found that 41pc of the public believe that leaving rates where they are is in the best interest of the economy, a rise from 35pc in May. Some 22pc said a rate rise would be best for them personally, while 26pc would rather see another cut from their current record low.