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ARTICLE · 10 NOVEMBER 2025

Pound Sinks Following Softer-Than-Forecast Inflation

IR Global
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The pound (GBP) traded without a clear direction yesterday, with Sterling rising against weaker peers, amid mixed data on the UK government finances.

United KingdomFinance and Banking
Amanda Dunn (Currencies Direct)
Amanda Dunn (Currencies Direct)
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Pound (GBP) unclear following mixed borrowing data

The pound (GBP) traded without a clear direction yesterday, with Sterling rising against weaker peers, amid mixed data on the UK government finances.

Although borrowing swelled in September, the Office for Budget Responsibility (OBR) said that improved tax receipts have eased pressures, with borrowing expected to decline though the second half of the year.

Turning to today, the pound has plunged this morning as cooler-than-forecast UK inflation data prompts markets to rethink Bank of England (BoE) interest rate cut bets. Headline inflation held at 3.8% in September, rather than rising to 4%, while core inflation eased from 3.6% to 3.5%, rather than increasing to 3.7%.

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