Sterling Falls Toward 7-Week Low

2025-09-25 14:56 By Agna Gabriel 1 min. read

The British pound slipped below $1.335, nearing a seven-week low, as investors weighed inflation risks and the Bank of England’s policy outlook.

BoE policymaker Megan Greene urged caution on rate cuts, suggesting a pause in November, while Governor Andrew Bailey signaled more easing is still needed.

The divergence highlights uncertainty as UK inflation, the highest in the G7, stood at 3.8% in August and is expected to peak at 4% before easing toward target in 2027.

Political jitters added to pressure, with Greater Manchester Mayor Andy Burnham calling for renationalizing key services and proposing £40bn in borrowing for housing, a move likely to unsettle gilt markets already showing weak demand at bond auctions.

The pound’s losses deepened after stronger-than-expected US GDP revisions reinforced dollar strength and dampened Fed rate-cut bets.



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