# Sterling declines despite 0.5% UK rate hike

> Sterling declined against most major currencies on June 22 after the Bank of England raised rates 0.5 points to 5%. GBP/USD fell 0.2% to 1.2736 while the dollar index rose 0.3%. Fed Chair Powell also signalled more US rate hikes in testimony the same day.

- Date: 2023-06-22 · published 2023-06-22T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/35763-sterling-declines-despite-0-5-uk-rate-hike
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Sterling weakness alongside a stronger dollar raises the local-currency cost of dollar-priced grains and meals for UK and European importers. Fed tightening expectations reinforce the dollar's strength.

## Read by commodity

- DXY: bullish ▲
- GBPUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2026-08-26 | [Euro falls despite report signaling ECB rate hike](https://feedsoft.ai/events/18102-euro-falls-despite-report-signaling-ecb-rate-hike.md) | +0.4% | +1.6% |
| DXY | 2026-07-28 | [Sterling slips as oil slides, US rate hike bets grow \| MarketScreener UK](https://feedsoft.ai/events/18614-sterling-slips-as-oil-slides-us-rate-hike-bets-grow-marketscreener-uk.md) | -0.9% | -2.0% |
| DXY | 2022-08-05 | [Sterling tumbles as solid U.S. payrolls data firms Fed rate-hike view](https://feedsoft.ai/events/40288-sterling-tumbles-as-solid-u-s-payrolls-data-firms-fed-rate-hike-view.md) | -0.9% | +2.1% |
| DXY | 2022-01-28 | [Sterling hits year low vs dollar on Fed rate hike fears and UK political risks](https://feedsoft.ai/events/43376-sterling-hits-year-low-vs-dollar-on-fed-rate-hike-fears-and-uk-political-risks.md) | -0.9% | -0.6% |
| DXY | 2022-12-15 | [Sterling falls after BoE's ninth consecutive rate hike](https://feedsoft.ai/events/38476-sterling-falls-after-boe-s-ninth-consecutive-rate-hike.md) | +0.4% | -2.2% |

## Sources

- economies.com: https://www.economies.com/forex/gbp-usd-news/sterling-declines-despite-0.5-uk-rate-hike-42995

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