Bank of England cuts rates, but what does this mean for sterling?

The Bank of England slashed its policy rate by 25 basis points for the first time since 2020 on Thursday in a narrow 5-4 vote. While this was not fully priced in by markets, the bank’s statement struck a cautious note on future cuts, warning that rates would not be lowered too much or too quickly. This partly allowed GBP to hold its own following the decision. Meanwhile, the Federal Reserve held rates steady on Wednesday, but chair Powell firmly hinted at a cut at the next meeting in Septemb...