The Bank of England’s monetary policy decision on Thursday will be a key investor focus after the European Central Bank cut interest rates for the second time since the coronavirus pandemic and with the US Federal Reserve expected to start its cutting cycle on Wednesday.

BENGALURU (Reuters) - The Bank of England will keep its main interest rate at 5.00% next week but reduce it in November even though inflation is expected to stay above the central bank's 2% target, a firm majority of economists in a Reuters poll said.

Sticky services inflation and a more hawkish tone from the Bank of England means investors are starting to price a less aggressive easing cycle in the UK relative to the US.

The Bank of England faces mounting pressure to cut interest rates further as job vacancies fall and factory output contracts for the first time in four years, signalling an economic slowdown. Learn about the latest market trends and rate expectations.

The Bank of England will keep its main interest rate at 5.00% next week but reduce it in November even though inflation is expected to stay above the central bank's 2% target, a firm majority of economists in a Reuters poll said.

With services inflation still elevated, the Bank of England is treading more carefully towards lower interest rates than the Federal Reserve.

An interest rate cut from the Bank of England next week looks unlikely but investors will be watching its September meeting for clues about future moves, as well as a decision over the pace of its bond sales - a hot political topic.

Britain's housing market gained fresh strength in September on the back of the Bank of England's first interest rate cut in more than three years and growing political stability following the July 4 election,