{"id":130479,"title":"BoE ‘too slow’ on rate cuts as inflation retreats","publisher":"Share Talk","author":"sharetalk","published":"2025-12-17T12:32:44+00:00","modified":"2025-12-17T12:33:21+00:00","canonical_url":"https://www.share-talk.com/boe-too-slow-on-rate-cuts-as-inflation-retreats/","markdown_url":"https://www.share-talk.com/boe-too-slow-on-rate-cuts-as-inflation-retreats.md","json_url":"https://www.share-talk.com/boe-too-slow-on-rate-cuts-as-inflation-retreats.json","category":"Blogs","categories":["Blogs","Business & Support Services","Technology","Technology, Media & Telecoms"],"tags":["Bank of America","Bank of England","banking","BARC","Barclays","Benchmark","BoE","buyback","Chancellor","childcare","CME Group","consumers","Coverage","CS Venkatakrishnan","Deutsche Bank","domestic","energy bill","England","FCA","Fed","Federal Deposit Insurance Corporation","Federal Reserve","FREE","FTSE 100","FTSE 250","FTSE100","futures","Goldman Sachs","household","HSBC","HSBC Holdings","Inflation","investors","Jeremy Hunt","Legal & General","lending","Lloyds Banking Group","London","MCP","midcap index","Monetary Policy Committee","NatWest Group","Ofgem","pandemic","price cap","Prime Minister","program","Prudential","Qatar","Regulators","Rishi Sunak","SEC","Serious Fraud Office","share","Share Talk","ShareHolders","silicon valley","Silicon Valley Bank","SIVB","SVB","The Bank of England","Traders","Treasury","UK","Underground","USA","Wall Street"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2024/10/BANK-OF-ENGLAND-OCT-24.webp?fit=1200%2C800&quality=80&ssl=1","format":"news","language":"en-GB","content":"The Bank of England risks falling behind the curve on interest rate cuts and may be forced to [“play catch-up”](https://www.share-talk.com/easing-inflation-clears-path-for-bank-of-england-rate-cut/) next year if it delays action as inflation continues to ease, according to an investment bank.\n\nKallum Pickering, chief economist at Peel Hunt, said inflation is likely to drift back towards the Bank’s 2% target over the course of next year, arguing that the worst of the inflation shock for the UK economy has probably passed. Consumer price inflation fell to 3.2% in November.\n\nThe Bank raised interest rates to a peak of 5.25% after inflation surged above 11% in 2022 in the wake of Russia’s invasion of Ukraine and the resulting energy crisis. Pickering believes policymakers should follow a rate cut in December with another reduction in February, citing a lack of economic growth since the summer and a labour market that is cooling rapidly.\n\nHe warned that, because monetary policy operates with a lag, waiting until inflation is back at 2% before easing policy risks deepening the economic slowdown rather than stabilising it. “The danger now is that the Bank of England keeps policy too tight for too long,” he said, which could undermine broader macroeconomic stability."}