 Federal Reserve officials said on Wednesday the U.S. central bank is closer to cutting interest rates given inflation's improved trajectory and the labor market in better balance. British inflation defied forecasts for a slight fall and held at 2% in June, while strong underlying price pressures prompted investors to reduce bets that the Bank of England will cut interest rates in two weeks' time for the first time since 2020. Oil prices climbed about 2% on Wednesday on a bigger-than-expected weekly drop in U.S. crude stockpiles.