Bank of England Governor Andrew Bailey explicitly denied on Tuesday at a parliamentary hearing that the central bank has a predetermined path for interest rate hikes, stating he wanted to dispel the market's notion that the BoE "has a secret plan and knows where we are going." Despite this, the British pound strengthened on Wednesday, last trading at $1.3559, nearing its highest level since August 28. Current money markets have priced in at least two rate hikes, and are betting on an approximately 40% chance of another hike before March next year, indicating a clear divergence between market pricing and the central bank's statements. Meanwhile, the ongoing conflict in the Middle East continues to push energy prices higher, with Brent crude surpassing $100/barrel. UK CPI rose to 2.9% year-on-year in July, up from 2.6% in June, as energy shocks are re-emerging as a key variable influencing UK interest rates and the pound's trajectory.