Investor expectations for Bank of England quantitative tightening in the 12 months from October edged lower to a median 72 billion pounds ($97 billion), down from 75 billion pounds in a survey conducted by the central bank in May.

Financial markets predict the Bank will reduce interest rates to 4% from 4.25% in its fifth cut since last August.

The Bank of England is widely expected to cut its key interest rate Thursday, with policymakers mindful of US tariffs and their potential risks to an already-struggling UK economy.

The Bank of England said on Thursday it estimates that its programme to cut its bond holdings may have added as much as a quarter of a percentage point to the cost of 10-year British government borrowing,