08:01 AM EDT, 08/05/2025 (MT Newswires) -- Deutsche Bank said it expects the Bank of England (BoE) to deliver its fifth cut of the easing cycle on Thursday -- taking Bank Rate to a new cyclical low of 4%.

However, there's more to the current easing cycle than meets the eye, noted the bank.

For starters, the current easing cycle -- without a doubt -- is historically long, stated Deutsche Bank. With the first Bank Rate cut coming in August 2024, the current easing cycle marks the third-longest easing cycle in the post-WWII period.

If the bank's projections are broadly on the mark, the current easing cycle is poised to become the longest on record -- with Deutsche Bank's base case including three further rate cuts by February 2026.

Secondly, despite the duration of the easing cycle, there's little to show in terms of total easing, added Deutsche Bank. Indeed, the scale of easing delivered over the last year (125bps if this week's very likely rate cut is included) remains historically low for the duration of the easing cycle.

In fact, no easing cycle that has lasted over two quarters has delivered less easing than the current one.

This easing cycle is clearly different, according to the bank. Not only is the length of the easing cycle already long by historical standards and projected to be the longest easing cycle in the post-war period, but the scale of easing likely to be delivered when all is said and done could be far below what Deutsche Bank seen in previous easing cycles.

This, in part, reflects the BoE's own guidance of a "gradual and careful" dial down of restrictive policy. It's also a reflection of a very divided Monetary Policy Committee following four years of above-target CPI.

In isolation, however, it also raises another question on whether the bank may be underestimating the scale of easing still to come in this cycle.