Bank of England Governor Andrew Bailey called for the world's financial powers, led by the United States and China, to avoid economic nationalism in a speech released three days before Donald Trump is due to be sworn in as U.

The disappointing retail data adds to the dim economic picture in the U.K. and to the challenges facing Finance Minister Rachel Reeves.

The Bank of England will cut interest rates four times this year to support a flat-lining economy, economists polled by Reuters said, but they added that risks to inflation are to the upside, suggesting policymakers may end up doing less.

The U.K. economy grew at a lackluster pace of 0.1% in November, data from the Office of National Statistics showed Thursday.

Mark Carney was the first non-British person to become governor of the Bank of England in its more than 300-year history when he took the job in 2013. He had previously worked at the investment bank Goldman Sachs, and served as the governor of the Bank of Canada, the country's central bank.

The fall in the headline rate of inflation from 2.6 percent to 2.5 percent was unexpected and positive news for the Chancellor Rachel Reeves.

The good news is not expected to last as inflation creeps up in the coming months as the rise in employer’s national insurance contributions arrives in April, higher VAT on school fees kicks in and road taxes rise. Add to that rising oil prices that could translate into higher costs for homes, transport and related services.

Alan Taylor, the most recently appointed member of the Bank's monetary policy committee (MPC) said the UK is 'in the last half mile on inflation' and called for a pre-emptive cut

Inflation worries eased on both sides of the Atlantic, boosting markets and providing respite to beleaguered Chancellor Rachel Reeves (pictured).

Alan Taylor, an external member of the Bank's Monetary Policy Committee (MPC), said a series of radical cuts could be on the agenda

The Bank of England said Friday it will delay implementing rules designed to prevent a 2008-style financial crisis as it awaits clarity on how they will be enforced in the US under Donald Trump.