Bank of England Voting Split to Drive Sterling on Thursday; 7-2 vs 6-3 Results May Diverge Pound Response

According to Ebury analyst Matthew Ryan, the Bank of England is expected to hold interest rates unchanged on Thursday (July 31), with voting splits likely to determine sterling's direction. A 7-2 vote supporting a rate hold, combined with dovish rhetoric downplaying inflation risks from energy prices, could cool rate-hike expectations and weigh on the pound. Conversely, a 6-3 result paired with forecasts showing inflation peaking closer to 4% rather than 3% may support sterling and lift yields at the short end of the curve.
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