Bank of England, Fed and ECB poised to leave interest rates on hold

Stubbornly high inflation forces central banks to avoid cuts, but markets expect falls next year

The western world's largest central banks are poised to keep interest rates on hold this week amid concerns over stubbornly high inflation, despite growing expectations for sharp cuts in borrowing costs next year.

In a crunch week for the global economy, the US Federal Reserve, Bank of England (BoE) and European Central Bank are expected to keep interest rates at their current restrictively high levels to ensure inflation continues to fall back from the highest levels in decades.