Division at the Bank of England threatens to cause major splits on its interest-rate-setting committee on Thursday.
The Telegraph says policymakers are growing increasingly divided on how to address Britain's economic challenges.
Markets are betting on the Bank's monetary policy committee (MPC) voting for a 0.5% increase on top of the current 3% rate - slowing from the 0.75% rise at the MPC's last meeting.
However, the pivot to a slower pace of tightening is expected to stoke division.
City economists predicted it could result in the first four-way split since the Bank gained independence in 1997, as the seven committee members balance the threat of inflation against the UK's plunge into recession.
Analysts think members could vote for anything between holding the current rate, right up to a 0.75% increase.
Backdrop
The division comes against a backdrop of industrial unrest, high inflation, an ultra-tight jobs market and recession. The unusual combination means policymaking is more difficult.
JPMorgan economist Allan Monks warned that a four-way split would "muddle the Bank of England's message on rates".
Forecasters said the strikes gripping Britain threaten to deepen the downturn this winter and stoke inflation, causing more headaches for the Bank's rate-setters. Rail staff, postal workers and nurses are all staging walkouts this week.
Paul Dales, chief UK economist at Capital Economics, said that the industrial action would have a direct impact on sectors that generate 18% of UK GDP.
The hospitality and travel industries are expected to be hardest hit by growing industrial action that will further dampen economic activity.
The Centre for Economics and Business Research estimates that the rail strikes will cause a near-£500million hit to GDP by the end of January.
Recession and the cost-of-living crisis have created some doubt at the Bank about pushing rates up much further.
Wage growth
However, a tight jobs market is stoking wage growth and threatens to result in high inflation to be stubbornly persistent.
There are hopes that inflation data on Wednesday will suggest price growth has now peaked and is beginning to slow.
Economists expect the inflation rate to fall from a 41-year high of 11.1% to 10.9% in new figures for November.
A host of central banks are set to slow the pace of their rate rises this week after signs that inflation has peaked.
Rate-setters at the Federal Reserve and European Central Bank are also expected to vote for a slower rise in borrowing costs at their respective meetings this week.
FTSE 100
The UK's top share index, the FTSE 100, was down 22 points at 7,454 shortly after opening this morning, following Friday's four-point gain.
Brent crude futures were 0.41% higher at $76.42 a barrel.
No FTSE 350 companies are due to report today.