Sterling fell against the dollar on Thursday, on track for its biggest daily drop in about a month, as investors awaited the outcome of the Bank of England's meeting, at which the central bank is widely expected to cut interest rates.

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.

New growth and inflation projections are due to be unveiled later alongside the Bank of England’s latest interest rates decision. The base rate is set to fall from 4.75% to 4.5%, in keeping with the central bank’s current once-a-quarter approach to loosening monetary policy.