London stocks slip as BoE policymaker flags inflation concerns

(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window)

*

FTSE 100 down 0.22%, FTSE 250 down 0.25%

*

British medical equipment shares slide on US tariffs fears

*

Petershill Partners (PHLLF) hits four-year high amid delisting plan

*

Mitchells & Butler dives on weak Q4 sales growth

Sept 25 (Reuters) - London stocks edged lower on Thursday as investors turned cautious over inflation risks and Bank of England's interest rate outlook, while weakness in medical equipment shares added to the drag.

The benchmark FTSE 100 fell 0.22% at 0909 GMT, while the domestically focused FTSE 250 was down 0.25%.

BoE policymaker Megan Greene said on Wednesday that the risks of inflation in Britain will prove stronger than the central bank's forecast, meriting a cautious approach to further interest rate cuts.

At its meeting this month, the BoE suggested it could slow the pace of its rate reductions due to persistent inflation pressures in Britain.

The country has the highest inflation rate among Group of Seven economies, at 3.8% in August, and the BoE thinks it will peak at 4% in September before falling back to the central bank's 2% target in the spring of 2027.

In the market, medical equipment and services stocks fell 2.2% after the U.S. Commerce Department said it has opened new national security investigations into the import of personal protective equipment, medical items, robotics, and industrial machinery.

British medical equipment maker Convatec Group (CNVVF) was the biggest decliner on the FTSE 100, falling 6.1%.

Construction and materials was also among the top declining sub-sectors, down 1.3%, tracking losses in European peers.

Mitchells & Butlers (MBPFF) fell 6.6% after the British pub and restaurant operator reported a weak sales growth compared to previous quarter.

Petershill Partners (PHLLF) jumped 33.1% after the investment group, majority owned by Goldman Sachs, became the latest UK-listed firm to announce plans to delist from the London Stock Exchange, citing dissatisfaction with its share price and valuation.

An index of industrial metal miners continued gains from the previous session, up 1.8%, as copper struck a fresh 15-month high on Thursday.

Rio Tinto and Anglo American were among the top gainers in the FTSE 100, up 2.8% and 1.8%, respectively.

Across the Atlantic, at least seven Federal Reserve officials are due to speak later on Thursday. Traders hope they will offer greater clarity on how far and fast U.S. interest rates will drop.

(Reporting by Sanchayaita Roy in Bengaluru; Editing by Leroy Leo)