The Bank of England is widely expected to lower its policy rate by a quarter-percentage point to 4% on Thursday, extending an easing cycle that began earlier this year. Policymakers are acting despite inflation that remains above the 2% target, citing softer indicators in the labour market and sluggish economic momentum. Economists see little appetite for an aggressive pivot. ING’s James Smith said current jobs data offer “no smoking gun” to justify faster action, and most analysts anticipate at most one cut per quarter. Reuters columnist Mike Dolan notes the approach would be the shallowest and most drawn-out monetary loosening in modern UK history. Deutsche Bank projects the Bank Rate will fall to 3.25% by February 2026, implying four additional quarter-point reductions. Financial markets price a similar endpoint, reflecting both persistent inflation risks and a split Monetary Policy Committee that remains wary of repeating past policy missteps.