Sterling holds firm as slowing inflation supports Bank of England rate cut expectations
Sterling held steady today as cooling inflation reinforced expectations for a Bank of England rate cut. Traders also weighed upcoming political challenges.
Official figures released on February 18, 2026, showed that annual inflation in the United Kingdom 
GB slowed to 3.0% in January, a decrease from the 3.4% recorded in December. The decline in the UK consumer prices (CPI) has strengthened expectations among money market traders for a near-term interest-rate cut by the Bank of England.
GB slowed to 3.0% in January, a decrease from the 3.4% recorded in December. The decline in the UK consumer prices (CPI) has strengthened expectations among money market traders for a near-term interest-rate cut by the Bank of England.
