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UK households bring forward rate hike expectations after Carney hint

LONDON, July 22 (Reuters) - Bank of England Governor Mark Carney's message that higher interest rates are approaching has been heard by British households who are braced for tougher times ahead, according to a survey published by financial data firm Markit (NasdaqGS: MRKT - news) on Wednesday.

Carney said on July 16 that a decision about a first increase in Bank Rate since before the financial crisis was likely to "come into sharper relief around the turn of this year".

About 44 percent of survey respondents questioned after the speech said they expected tighter monetary policy in the coming six months, versus 31 percent before the speech was made and 24 percent in June, Markit said.

The Markit Household Finance Index showed current and future inflation perceptions were their strongest so far this year, even as Britain's main gauge of consumer prices slipped back to zero in June.

Pessimism among public sector workers pushed overall perceptions for financial wellbeing over the next 12 months to their lowest level in a year. Earlier this month, finance minister George Osborne said public sector pay increases will be capped at 1 percent for the next four years. (Reporting by William Schomberg)