Agencies: The UK economy is stagnating, and the Bank of England is expected to cut interest rates again

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]."