LONDON, Aug 4 Reuters The pound held steady just above a fiveweek low on Friday as traders continued to process the previous day39;s 25 basis point Bank of England rate hike, and ahead of crucial U.S. jobs data.

After lifting rates by 50 basis points in June, the BoE, on Thursday, hiked by 25 bps to 5.25, but said high inflation meant rates would remain elevated for some time.

The shift in emphasis from the level of restrictive rates to their duration suggests that the Bank of Englands Monetary Policy Committee is guiding towards the end of the tightening cycle, said BNP Paribas analysts in a note.

The pound was fairly unmoved by the decision, and was last at 1.27065, flat on the day and only a whisker below its close on Wednesday, the day before the meeting.

BNP Paribas said this could partly reflect that GBP has done a lot, having broadly weakened over the past few weeks, as markets have repriced BoE expectations.

That said, we do not think this happy medium will continue, and see scope for weakness to resume.

The analysts said that either the BoE pauses or hikes just once more, meaning rates and the pound need to adjust lower still, or, if more aggressive tightening is needed, markets may expect a greater hit to the British economy, also weighing on the pound.

Sterling was the bestperforming major, developedmarket currency against the dollar in the first half of the year, and reached as high as 1.3144 in mid July, when projections for peak BoE rates were…