# Pound slides on BoE rate cut as investors fret about 'stagflation'

> The Bank of England cut its policy rate by 25 basis points to 4.5% and halved its 2025 UK growth forecast to 0.75%. It also raised its inflation peak forecast to 3.7%, well above earlier estimates. Sterling fell about 0.8% to around $1.241.

- Date: 2025-02-06 · published 2025-02-06T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/26316-pound-slides-on-boe-rate-cut-as-investors-fret-about-stagflation
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

Weaker UK growth alongside higher inflation raises stagflation concerns and keeps further rate cuts priced in, which weighs on sterling against the dollar. For feed buyers the effect on grain and feed prices is indirect.

## Read by commodity

- GBPUSD: bearish ▼

## Sources

- reuters.com: https://www.reuters.com/world/uk/pound-slides-stagflation-puts-boe-deeper-cutting-path-2025-02-06/

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