The pound fell 0.12% to $1.3529 as Bank of England Governor Andrew Bailey told Parliament that the UK economy was not heading for recession, while inflation risks remained tilted upward. The Bank held Bank Rate at 3.75% in a 6-3 Monetary Policy Committee vote and is expected to keep it there through at least mid-2027, although policy will depend on incoming data. A Reuters poll of 65 economists found all expected no change at the Sept. 17 meeting, while 57 forecast no year-end change and eight predicted a rise to 4.00%. Bailey said prolonged high oil prices could generate second-round effects through wages and broader prices, while the Bank’s risks include weak productivity, an aging population, tariff-related trade shocks and a correction in artificial-intelligence valuations that could reduce GDP by up to 2.2%.