# Searing UK inflation is driving the pound near a 37-year low. 'Is there more downside? Yes, absolutely' | Fortune

> Sterling is trading near $1.18, less than 4 cents above its weakest level since 1985, as UK inflation drives currency weakness. The Bank of England is forecasting a five-quarter recession, and markets expect rates to reach 4.25% next year.

- Date: 2022-08-27 · published 2022-08-27T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/40286-searing-uk-inflation-is-driving-the-pound-near-a-37-year-low-is-there-more
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

Persistent sterling weakness raises the cost of UK-sourced imports priced in dollars for feed buyers. It has little direct effect on grain or meal prices.

## Read by commodity

- GBPUSD: bearish ▼

## Sources

- fortune.com: https://fortune.com/2022/08/27/searing-uk-inflation-driving-pound-near-37-year-low/

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