Bank of England risks falling behind the curve

Hefty recent interest rate rises by the US Federal Reserve and European Central Bank highlight the concern among central bankers that high inflation could become entrenched and spiral further beyond their control. The Bank of England will confront this trade-off when it announces its next interest rate decision on Thursday. Since the BoE began lifting its pandemic-era stimulus in December with an initial 15 basis-point rise, it has raised rates in slow and steady quarter-point increments.