Dollar index DXY rose above 101, up 0.18% intraday.

10-year gilt yield fell to 5.005% after the Bank of England held Bank Rate at 3.75% as widely expected, down 1.3bps intraday from 5.027% pre-decision. Three of nine MPC members preferred a rate rise; the BoE said there is little sign so far of second-round effects from high energy prices and noted slowing wage growth and a weakening labour market.

Turkish officials said Turkey expects oil shipments from Iraq to continue despite failure to renew a decades-old pipeline agreement that expired on Monday. Erdogan and Iraqi Prime Minister Ali Zaidi failed on Tuesday to reach a final deal on the 986 km (613 mile) Kirkuk-Ceyhan pipeline, but agreed to maintain deliveries while talks continue. Officials said any final accord would be backdated to July 27, the expiry date of the previous 53‑year agreement.