Pound Surges to Two-Week High Amid Reassessed BoE Rate Path

The British pound has held near its two-week high against the US dollar, trading at around $1.345 and poised for a monthly gain of over 1%.

This is its best monthly performance since April.

Investors are reassessing the Bank of England's July decision to keep interest rates unchanged after a 6-3 vote, with three policymakers favoring a rate hike instead of the expected 7-2 split.

Governor Andrew Bailey pushed back against speculation of an imminent tightening cycle, stating that the disinflation process remains intact, while some officials noted that rate cuts could return to focus if the Iran conflict ends.