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 should move quickly to bring down interest rates given signs of a slowdown in Britain's economy, Alan Taylor, the BoE's most recently appointed interest rate setter, said on Wednesday.

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

The UK economy faces mounting uncertainty as discussions intensify around potential changes to monetary policy. Speculation is growing that the Bank of England may take decisive action in the months ahead to address evolving economic challenges.

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