The Bank of England is expected to lower its key interest rate for the fifth consecutive time, navigating between supporting growth and anchoring price stability. Inflation spike driven by fiscal policy changes poses a dilemma for policymakers, who are divided on the risks. Quarter-point cuts every three months have been the solution so far, with external risks further complicating the policy picture. Weak labor market dynamics add to the challenge of taming inflation without deepening the slowdown. Economists anticipate another split vote on Thursday, with gradualism likely to remain the BOE’s strategy in the uncertain economic terrain.

Read more at Investing.com: Bank of England’s Rate Path: Gradual Cuts Amid a Foggy Outlook