While stubborn inflation figures and robust growth data reinforced expectations that the Bank of England still has work to do to reduce inflation, sterling remained steady and headed for a second consecutive monthly gain and a fourth positive month in five months in July.

For the 14th time in the current tightening cycle on Thursday, the British central bank is expected to raise its key interest rate, but traders and economists are divided on the extent of the rise. Economists expect the BoE to raise its key rate by 25 basis points to 5.25%, while 20 others expected to rise by half a point. The pound was little changed against the dollar, at 1.2856 dollars, while the euro bought 85.85