The British pound has weakened against the US dollar, falling to its lowest point in nearly two weeks.
Pound slides on trade fears, rate cuts loom
This decline is attributed to growing fears of global trade conflicts sparked by recent tariff actions. These actions have raised concerns about potential harm to the global economy, leading investors to anticipate multiple interest rate cuts by the Bank of England (BoE) this year.
The expectation of these rate cuts has intensified following the imposition of tariffs on several countries, including Mexico and Canada, and threats of similar actions against the EU and the UK.
BoE rate cuts expected by year-end
Financial markets are now pricing in a significant reduction in the BoE's key interest rate by December, with a high probability of an initial cut at the upcoming meeting.
