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Sterling falls as Bank of England signals path to interest rates cuts ahead

BusinessSterling falls as Bank of England signals path to interest rates cuts ahead


BoE main rate kept at 5.25pc as UK economy is ‘going in right direction’

Interest rate-setters voted 8-1 to keep borrowing costs at a 16-year high. Photo: Getty

Joice Alves and Amanda Cooper

Sterling fell, while UK government bond prices rallied yesterday, after the Bank of England kept interest rates unchanged but signalled the economy was moving in the right direction for it to start cutting rates.

The BoE kept its benchmark rate at 5.25pc – its highest since 2008 – as had been widely expected, a day after data showed inflation fell to its lowest in almost two-and-a-half years but stayed too high for comfort.



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