BoE Decision in Focus as Sterling Hovers Near Four-Week Low

The Bank of England's interest rate decision is at the forefront of investors' minds as they weigh the potential impact of rising oil prices on inflation in Britain.

Sterling has gained against the euro, but remains under pressure against the US dollar due to risk aversion tied to escalating Middle East tensions.

The pound slipped 0.2% to $1.334 ahead of the BoE's decision, while the euro eased 0.15% to 0.8573 pence.

Markets expect policymakers to keep borrowing costs unchanged, but are closely watching the central bank's forecasts and vote split among the Monetary Policy Committee members for signals on future policy direction.