Finance
Sterling dips after data shows slower UK economic growth
Published by Global Banking and Finance Review
Posted on January 16, 2025
1 min readLast updated: January 27, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on January 16, 2025
1 min readLast updated: January 27, 2026
The pound fell after UK GDP growth in November was slower than expected, potentially allowing the Bank of England to cut interest rates.
LONDON (Reuters) - The pound fell on Thursday after data showed the British economy grew more slowly than expected in November, which could give the Bank of England more room to cut interest rates this year.
The Office for National Statistics said gross domestic product expanded by 0.1% in November, following October's 0.1% drop, and below forecasts in a Reuters poll of analysts for a rise of 0.2%.
The pound edged lower following the data to trade down 0.31% on the day at $1.2207, compared with around $1.222 right before the data.
Against the euro sterling was down 0.26% on the day at 84.29, from 84.18 pence before the GDP numbers.
The derivatives market is currently pricing in 58 basis points' worth of cuts from the BoE by the end of this year.
(Reporting by Amanda Cooper; Editing by William Maclean)
The article discusses the impact of slower UK economic growth on the sterling and potential interest rate cuts by the Bank of England.
The pound fell against both the dollar and the euro following the release of the economic data.
The derivatives market is pricing in 58 basis points' worth of interest rate cuts by the Bank of England by the end of the year.
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