LONDON (Reuters) -British inflation held steady in August but rose in the services sector which is closely watched by the Bank of England, data showed on Wednesday, adding to bets in financial markets that the central bank will keep interest rates on hold on Thursday.

The decision to hold rates was not unanimous with one member of the Bank's rate-setting Monetary Policy Committee voting for a cut. Governor Andrew Bailey gave hints of further cuts - but forecast inflation will continue to rise.

UK inflation held at just above the Bank of England’s 2% target in August, cementing expectations that policymakers will cut interest rates again later this year. Most Read from BloombergCalifornia’s Anti-Speeding Bill Can Be a Traffic Safety BreakthroughPipe Fire Near Houston Forces Residents to EvacuateLondon Mayor Plans to Pedestrianize Busy Oxford StreetTo Build a Happier City,