BoE Lags Behind as Inflation Rises to 3.1%

The Bank of England's decision to hold interest rates steady and ignore the Federal Reserve's rate hike has raised concerns about its ability to tackle inflation. The BoE policymakers left rates unchanged on Thursday, hours after data showed UK inflation climbing to 3.1% in August, the first move above 3% since March.

This decision follows a US Fed rate increase on Wednesday to a range of 3.75% to 4%, its first hike since 2023. The European Central Bank lifted rates to 2.5% last week, its second increase this year, and the Bank of Japan looks poised to move within days.

Nigel Green, CEO of deVere Group, warned that the BoE's 'hold' decision risks falling behind the curve on the inflation battle. He stated that every major central bank at the table is acting except one: the feet-dragging Bank of England.