# Sterling tumbles as declining inflation cements BoE cut bets

> Sterling fell to a low of $1.3343 after UK inflation dropped to 3.2% in November, well below forecasts. Interest rate futures priced close to a 100% chance of a BoE cut, and UK gilt yields fell sharply. The UK economy also contracted unexpectedly in the three months to October.

- Date: 2025-12-17 · published 2025-12-17T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/21764-sterling-tumbles-as-declining-inflation-cements-boe-cut-bets
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

Lower UK rates weaken sterling and feed through to UK borrowing and demand. The effect on feed and grain prices is minimal.

## Sources

- uk.finance.yahoo.com: https://uk.finance.yahoo.com/news/sterling-tumbles-declining-inflation-cements-094957778.html

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