The Bank of England's latest monetary policy decision shows that the Policy Committee has chosen to keep interest rates stable, maintaining the bank rate at 3.75%. Governor Andrew Bailey stated that the Committee is not currently moving towards further rate hikes, a statement that has led the market to readjust its expectations for the future path of UK interest rates. The Bank of England's decision was generally cautious, primarily due to recent price pressures being lower than previously predicted. While policymakers remain concerned about energy price volatility and potential inflation rebounds from external risks, current inflation data does not show clear signs of acceleration, leading most members to continue monitoring economic developments. The Bank of England stated that the policy committee remains prepared to act if inflationary pressures persist above the target level. This implies that the central bank has not completely ruled out future policy tightening, but the threshold for a rate hike has increased in the short term. The market had previously focused on the possibility of another rate hike at the September meeting, but investors lowered their expectations after this policy decision. This is mainly because while inflationary pressures in the UK have eased, economic growth still faces certain challenges, and further rate hikes could increase financing pressures on businesses and consumers. The voting results revealed significant divisions within the Bank of England. Catherine Mann joined Megan Green and Chief Economist Hugh Peele in supporting a 25 basis point rate hike, while six members, including Bailey, chose to maintain the current rate. The minority's support for a rate hike reflects continued concerns among some policymakers about potential inflation risks, especially given the backdrop of global energy market volatility and the potential impact of the Middle East situation on supply chains. If energy prices rise significantly again, the UK's inflation decline could be affected, forcing the central bank to reconsider its policy direction. However, most committee members currently believe that recent inflationary pressures are easing, and there is no immediate need for further tightening measures. The Bank of England hopes to determine whether the current downward price trend can be sustained by observing wage growth, service sector inflation, and changes in consumer demand. For the pound market, the Bank of England's cautious policy stance has weakened its interest rate advantage in the short term. The pound may face some pressure as the market lowers its expectations for interest rate hikes. However, if UK inflation heats up again in the future, or if rising global energy prices lead to renewed price pressures, the pound may still have a repricing opportunity. The market is currently focused on subsequent UK economic data, including inflation, employment, and consumption indicators. Meanwhile, changes in the global energy market and policy differences among major central banks will continue to influence the pound's performance. From a daily chart perspective, GBP/USD is under short-term pressure after the Bank of England released cautious signals, but remains within a range-bound structure. The exchange rate is currently watching the support area around 1.3400; if this level holds, there is still a chance to maintain a medium-term rebound. Resistance levels to watch are 1.3500, 1.3550, and 1.3600. A break above 1.3600 could open up further upside potential. A break below 1.3400 could test support levels around 1.3350 and 1.3300. Technical indicators suggest that the pound's upward momentum has slowed, but a clear trend reversal has not yet formed. On the 4-hour chart, GBP/USD has entered a short-term consolidation phase, with prices influenced by a rebounding dollar and dovish sentiment from the Bank of England, leading to increased selling pressure. If the exchange rate can regain a foothold above 1.3450, the market may resume its rebound and test the 1.3500 level; however, continued pressure and a break below 1.3400 could lead to a further decline towards the 1.3350 area. Currently, short-term price action still depends on changes in the EUR/USD interest rate differential and the market's repricing of the Bank of England's future policy path. Editor's Summary: The Bank of England maintained its interest rate at 3.75% and lowered near-term rate hike expectations, reflecting policymakers' increased focus on the downward trend in inflation and economic growth pressures. While a minority of members supported a rate hike, indicating continued internal concerns about a potential rebound in inflation due to energy prices and external risks, the prevailing view remains inclined to maintain policy stability. In the short term, the Bank of England's cautious stance may limit the pound's upside potential, but its future trajectory will depend on inflation data and changes in global energy prices. If inflation continues to decline, the market may further lower its rate hike expectations; if energy costs rise again, the Bank of England may revert to a tighter policy stance. Overall, the pound market has entered a policy observation phase, and investors need to pay close attention to UK economic data and subsequent statements from central bank officials to assess the long-term impact of interest rate path changes on the exchange rate.