0835 GMT - Sterling could appreciate modestly if the Bank of England keeps interest rates unchanged as expected but indicates a rate rise at the following meeting in November, MUFG Bank's Derek Halpenny says in a note. In this case, short-dated yields could rise slightly as back-to-back rate increases get better priced in by markets, he says. "That will help support the pound although we remain skeptical of upside scope of any notable magnitude ahead of the U.K. budget on October 28." Moreover, the Federal Reserve and European Central Bank have raised rates this month. The BOE announces its decision at 1100 GMT. Sterling trades flat at $1.3387. The euro rises 0.1% to 0.8568 pounds.