The Bank of England is widely expected to cut interest rates for the third time in six months later Thursday, even though inflation remains above its target. Most economists think the nine-member Monetary Policy Committee will lower the bank's main interest rate by a quarter of a percentage point to 4.

Sterling dipped against the dollar on Thursday, as investors awaited the outcome of the Bank of England's meeting later on, at which the central bank is widely expected to cut rates.

The Bank of England was widely expected to cut its key interest rate on Thursday to help support weak British growth even if UK inflation stays elevated.

A CNBC report revealed that economists are betting on the Bank of England cutting rates by 25 basis points from 4.75% to 4.5% in the Thursday Monetary Policy Committee meeting. The expected rate cuts come as the UK economy continues to stagnate,