UK stocks fall as BoE policymaker flags inflation risks, medical device makers weigh

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

The benchmark FTSE 100 .FTSE fell 0.4%, its biggest percentage slide in a week. The domestically focused FTSE 250 .FTMC was down 0.5%.

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.

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.

Meanwhile, Wall Street share indexes fell to their lowest in a week on Thursday, as fresh economic data and comments from a Federal Reserve official tempered optimism over further rate cuts. .N

Yields on British government bonds climbed after data showed the U.S. economy grew more quickly than previously expected, pushing up borrowing costs on both sides of the Atlantic.

British medical equipment and services .FTNMX201020 stocks fell 2.3% after the U.S. Commerce Department said it had opened new national security investigations into the import of personal protective equipment, medical items, robotics, and industrial machinery.

Medical equipment maker Convatec Group CTEC.L was the biggest decliner on the FTSE 100, falling 5.6%, while Smith+Nephew SN.L declined 1.2%.

An index of healthcare .FTNMX201030 stocks also declined 1.8%.

Mitchells & Butlers MAB.L fell 8.5% after the British pub and restaurant operator reported a weak sales growth compared to the previous quarter.

Petershill Partners PHLL.L jumped 34.2% 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 .FTNMX551020 continued gains from the previous session, up 1.5%, tracking gains in copper prices. MET/L

Rio Tinto RIO.L was the top gainer in the FTSE 100, up 3.5%.

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