# Rate trap? BoE and sterling snared by rate frenzy: Mike Dolan | Reuters

> Sterling fell to a seven-month low during the week before October 8 as a sharp UK inflation rise lowered real yields. Investors worried that an early rate hike could slow the economy and reduce the longer-term policy rate path.

- Date: 2021-10-08 · published 2021-10-08T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/44809-rate-trap-boe-and-sterling-snared-by-rate-frenzy-mike-dolan-reuters
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

A weaker pound raises the cost of imported feed ingredients and freight priced in sterling for UK buyers. The effect on global commodity prices is small.

## Read by commodity

- GBPUSD: bearish ▼

## Sources

- reuters.com: https://www.reuters.com/markets/us/rate-trap-boe-sterling-snared-by-rate-frenzy-mike-dolan-2021-10-08/

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