Bank of England's MPC member Taylor said so far the economy is unlikely to reproduce the inflationary conditions seen in 2022.

Monex Europe analysts say the Bank of England could raise rates in November in response to an energy-price shock, but the move may not support sterling because the shock is also weighing on growth. They flag continued fiscal risk ahead of the Oct. 28 budget; Chancellor Healy has stressed fiscal discipline but most fiscal buffers have been exhausted. Analysts say sterling faces two-way risk until the fiscal position is clarified.

30-year government bond futures (TL) most-active contract rose more than 0.50 pct intraday to 117.66 yuan.