BDO LLP warned Bank of England of hiking interest rates Prematurely following the release of a report that showed UK companies' inflation expectations and employment has fallen in December.

The report showed that inflation expectations in Britain fell to 104.3 in December, compared with November's figures of 104.6, marking the lowest in nearly half a year, note that a reading above 100 signals that inflation continue to hover above the BoE's desired rate of inflation that is set at 2.0 percent.

The employment index reported a drop to a seven-month low of 93.6 in December, compared with 95.5 reported a month earlier.