Quarter-point reduction expected, with City investors predicting a three-way split among rate setters
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The Bank of England is poised to cut interest rates on Thursday despite a growing divide between its policymakers over the dangers to the economy from high inflation and rising unemployment.
In a development that will ease pressure on households and businesses, City forecasters expect the central bank to announce a quarter-point cut, its fifth rate reduction in a year.
Financial markets predict an almost 100% chance of a quarter-point cut from 4.25%, the same as the last reduction in May.
