Sterling nears one-month low as investors bet on Bank of England rate cuts

The British pound fell to around a one-month low against the dollar on February 20, 2026, as investors increased bets on Bank of England interest rate cuts. This move has driven sterling toward its largest weekly decline since January 2025, with the currency headed for a loss of roughly 1.3%. The shift in market expectations regarding monetary policy easing is directly affecting the valuation of the currency and reflects changing monetary policy risk currently priced by markets.