Why is the Bank of England being cautious in delaying rate cuts?

Unlike the Federal Reserve and the European Central Bank, the Bank of England is walking a different path by keep interest rates on hold at 5%. Photograph: Amer Ghazzal/Rex/Shutterstock

After the Federal Reserve’s monster 0.5 percentage point cut in US borrowing costs on Wednesday, it seemed strange that the Bank of England should sit on its hands and keep interest rates on hold.

From a position earlier this year when the UK’s central bank was leading the way in cutting interest rates, it is now a laggard.