Bank of England lags behind peers in battle to curb inflation, investors warn

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The Bank of England faces a particularly stubborn inflation problem that may stop it from cutting interest rates as sharply as peers next year, investors have warned, as the central bank prepares for its final policy meeting of 2023.

Article originally published by The Financial Times. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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11 Dec 2023

The Monetary Policy Committee is widely expected to say on Thursday that it is keeping its critical rate at a 15-year high of 5.25 per cent as it reiterates pledges to maintain a “persistently” tough stance on the cost of borrowing.

The MPC voted at its past two meetings in September and November to hold interest rates at that level, after raising them from historic lows since the end of 2021.

This week’s meeting comes against a backdrop of global speculation that the rate-lifting cycle by big central banks — which started after the end of Covid-19 lockdowns — is not only over, but could be reversed in 2024 as headline inflation indicators fall in advanced economies.

But economists have that warned the BoE faces a tougher job than peers such as the European Central Bank in returning consumer price