The Bank of England's Monetary Policy Committee (MPC) voted 6-3 to keep the benchmark interest rate unchanged at 3.75% on 30 July, against the consensus expectation of a 7-2 split.
UK officials sought to balance threats from US-Iran tensions against signs that domestic price pressures in the UK are easing faster than expected. The MPC also highlighted the risk of inflation rising later in the year.
Bank of England benchmark interest rate held steady by 6-3 vote on 30 July
Separately, the US Federal Reserve held interest rates steady as expected, while US second-quarter economic growth appeared weaker. The US Non-Farm Payrolls report on 7 August could be a significant surprise.
GBP/USD (Cable) bounced from lows around $1.327 on 28 July. Ongoing strikes in the Persian Gulf and possible escalation could increase demand for the US dollar as a safe haven.