Traders have ramped up their bets on the total number of BOE rate cuts in 2025 since January, as Europe diverges from the U.S.

Rate-setters are all but certain to announce a cut from 4.75% to 4.5% at the next Monetary Policy Committee meeting on Thursday.

Markets have raised the prospect that the Bank of England will cut the base rate by up to four times this year, as fears of a global trade war rise.   US President Donald Trump has said he would impose tariffs of 25% on Mexico,