LONDON, July 31 Reuters The British pound was heading for a second straight monthly gain and fourth positive month in five in July as stubborn inflation readings and robust growth data reinforced expectations that the Bank of England has more to do to bring inflation lower.

Britain39;s central bank is likely to raise its key interest rate for the 14th time in the current tightening cycle on Thursday, but traders and economists are split on the size of the hike.

Inflation showing tentative signs of slowing in June has lessened the likelihood of a jumbo rate rise, but with consumer prices still rising at the fastest pace in the G7, markets still expect the BoE will need additional tightening after Thursday to keep inflation down.

A July 1924 poll showed 42 of 62 economists surveyed by Reuters expected the BoE to raise the Bank Rate by 25 basis points to 5.25, while 20 predicted a halfpoint rise.

Money market traders assign around a twointhree chance of a quarterpoint move and oneinthree that the Bank of England opts for a 50 basis point rate rise, while markets still price around 90 basis points of tightening by March next year.

If we get the 25 basis point increase, the pound could weaken, said Kirstine KundbyNielsen, analyst at Danske Bank.

The pound was last little changed against the dollar at 1.2856, while the euro last bought 85.85 pence.

In contrast to the BoE, the Federal Reserve and European Central Bank have both laid the groundwork for a pause in their…