According to official data released earlier this month, UK consumer inflation in May amounted to 3.4%, well above the 2% target. The Bank of England last week predicted that inflation would rise to 3.7% by September and hold at around 3.5% for the rest of the year. At the same time, Bank of England Governor Andrew Bailey said Tuesday that there are signs of a slowing labor market and reiterated expectations for further interest rate cuts. Rate futures show markets are giving an 80% chance of a rate cut in August. However, Bank of England spokeswoman Megan Green, who voted against a cut at the last meeting, warned that the recent surge in inflation could prove to be a sustained plateau rather than a temporary one, and the Regulator should be cautious about further key rate cuts. With such mixed expectations and forecasts, the Pound held its own against the Dollar on Wednesday, consolidating the gains of the previous two days, and continued to rise today. The GBP/USD pair is supported by the weakening dollar amid the controversy surrounding the US Fed policy.