# Sterling keeps rising after the Bank of England raised the bar on rate cuts

> Sterling rose 0.48% to about $1.3438 and was up roughly 7% for the year. Traders expect at least two more Fed cuts next year, which is putting the dollar under pressure against most currencies. The Bank of England cut rates by a quarter point to 3.75% in a narrow vote.

- Date: 2026-01-01 · published 2026-01-01T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/21759-sterling-keeps-rising-after-the-bank-of-england-raised-the-bar-on-rate-cuts
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Narrowing rate differentials weaken the dollar, which tends to support dollar-priced commodities such as feed grains and oilseeds. The effect on feed prices is modest and indirect.

## Read by commodity

- DXY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2025-02-06 | [Yen hits 8-week high; sterling drops after Bank of England rate cut](https://feedsoft.ai/events/26320-yen-hits-8-week-high-sterling-drops-after-bank-of-england-rate-cut.md) | +0.3% | -1.5% |
| DXY | 2024-10-03 | [Sterling plunges 1% after Bank of England governor's comments on rates](https://feedsoft.ai/events/28097-sterling-plunges-1-after-bank-of-england-governor-s-comments-on-rates.md) | +1.1% | +2.7% |
| DXY | 2020-07-29 | [Sterling rises as Fed keeps lid on US rates](https://feedsoft.ai/events/52364-sterling-rises-as-fed-keeps-lid-on-us-rates.md) | +0.4% | -0.4% |
| DXY | 2022-09-28 | [Sterling, euro rally against dollar after Bank of England buys UK bonds](https://feedsoft.ai/events/39830-sterling-euro-rally-against-dollar-after-bank-of-england-buys-uk-bonds.md) | -1.8% | -1.5% |
| DXY | 2017-06-28 | [Pound jumps on Bank of England Governor's rate rise hint - BBC News](https://feedsoft.ai/events/70748-pound-jumps-on-bank-of-england-governor-s-rate-rise-hint-bbc-news.md) | +0.1% | -1.9% |

## Sources

- reuters.com: https://www.reuters.com/world/uk/sterling-keeps-rising-after-bank-england-raised-bar-rate-cuts-2025-12-22/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.