The Bank of England is expected to hold interest rates at a meeting later today. Most analysts predict the benchmark rate will stay at its current level of 4.75% when the decision is announced at 12:00 GMT. It comes as inflation rose for the second month in a row to 2.6% in the year to November - pushing it further above the Bank's target of 2%.

The U.K.’s central bank is set to keep interest rates on hold as inflation has moved further above its target rate even though the British economy is flatlining at best.

The Fed’s signal that it will cut rates less than expected complicates efforts by other central banks to manage their economies.