The British pound held steady around the $1.27 level, remaining in close proximity to a 14-month peak of $1.2848 reached on June 16. Investors were carefully considering the possibility of higher borrowing costs, coupled with concerns over a potential recession prompted by the Bank of England's aggressive policy tightening. Governor Andrew Bailey emphasized that the recent interest rate surge was indicative of the economy's robustness and the unexpected persistence of inflation. Investors are now projecting the main interest rate to climb to 6.5% by March, following an unexpected 50 basis points rate hike in June.