The Bank of England is expected to cut interest rates and could unveil a new round of stimulus on Thursday, while cutting its economic forecasts for the U.K. weeks after the epoch-making Brexit vote.
Most economists now forecast that the Bank's rate-setting committee will cut interest rates to a new historic low of 0.25 percent, its first action on the base rate in more than seven years, when it cut to the current rate of 0.5 percent.
After all, last month, the Bank said "most members of the committee expect monetary policy to be loosened in August."
The forward-looking signs for the U.K. economy are pointing towards a difficult period, with the economy shrinking at its fastest rate since the 2008-09 financial crisis, according to the closely watched Purchasing Managers' Index short-term survey by financial data company Markit, which was released on Wednesday.
Many are also now speculating that there could be a new bond-buying program to help stimulate the U.K. economy, after a series of data points suggested that the country had slowed around the time of the historic referendum on European Union membership, which delivered a vote to leave that surprised many.
Attention will also focus on its latest inflation report, which is likely to downgrade the outlook for the post-referendum U.K. Inflation forecasts are set to rise following the notable weakening in sterling.