AsianFin--The Bank of England may cut borrowing costs on Thursday for the first time since the onset of the COVID-19 pandemic over four years ago, although economists suggest the decision will be a close call.

There is division among economists on whether the Bank of England will reduce its main interest rate by a quarter-point from the current 16-year high of 5.25%, or delay the move until September.

Despite inflation hitting the bank's target of 2%, some members of the nine-member Monetary Policy Committee have expressed concerns about persistent price pressures in the services sector, which comprises around 80% of UK's economy.

UK's interest rates have remained unchanged for a year following a series of dramatic hikes. However, signs over the past few months indicate the Monetary Policy Committee is leaning towards a cut, with two of the nine members supporting a reduction in the last two meetings.