LONDON, Oct 1 (Reuters) - Britons' expectations for inflation over the next 12 months fell slightly to 2.7 percent in September from 2.8 percent in August, a monthly survey by polling company YouGov showed on Monday.
The poll conducted on behalf of Citi also showed that inflation expectations for the next 5-10 years held steady at 3.5 percent.
Citi economist Michael Saunders said the figures gave the Bank of England's Monetary Policy Committee (MPC) scope to expand its quantitative easing programme in November, when the current 375 billion pound asset purchase target is reached.
"These readings give the MPC ample flexibility to respond with further stimulus if, as seems likely, the economy remains sluggish and continues to underperform MPC expectations. We continue to expect that the MPC will expand QE markedly further over time," he said.
(Reporting by David Milliken)
((david.milliken@reuters.com)(+44 20 7542 5109)(Reuters Messaging: david.milliken.thomsonreuters.com@reuters.net))
Keywords: BRITAIN INFLATION/CITI