Britain's central bank cut its main interest rate in response to a troubling mix of stuttering growth, stubborn inflation and President Trump’s tariff threats. Sterling lost about 0.5% against the dollar,

The Bank of England put a dovish twist to an expected rate cut, sending the British pound and bond yields lower. The central bank, as expected, cut interest rates by a quarter-point, its third reduction since August, to 4.5% from 4.75%.

The pound sterling fell sharply following the Bank of England’s decision to cut interest rates, a move aimed at supporting the struggling UK economy amid ongoing concerns over sluggish growth and rising inflation.