The Bank of England is expected to cut interest rates by another 25 basis points this week as policymakers weigh signs of a weakening UK economy against the prospect of a short-term pick-up in inflation. Financial marekt has been betting that the Bank of England's Monetary Policy Committee will cut the official interest rate to 4.5% on Thursday, the third cut in borrowing costs in more than half a year. But its deliberations will be complicated this week by the possibility of a resurgence in UK inflation and a possible global trade war following US President Donald Trump's tariffs on Canada, Mexico and others. Jari Stehn, chief European economist at Goldman Sachs, said: "We think the recent weakness in growth data, the deterioration in labour market indicators and the gradual rise in basic services inflation will mean broad support for a rate cut [of 25 basis points]."