BOE cuts rates to 4.5% as U.K. growth stalls. Pound weakens, gold gains. Will policymakers signal another cut as soon as March? Read more.

The GBP/USD exchange rate pulled back slightly after the Federal Reserve interest rate decision and US GDP data. It dropped to a low of 1.2400, down from this week’s high of 1.2500 as focus shifts to the upcoming US personal consumption expenditure (PCE) data and Bank of England (BoE) decision.

UK stocks have opened in positive territory, with the FTSE 100 up 0.7% and the FTSE 250 up 0.4%. The pound has weakened more against the dollar, now down 0.3%, and is about flat against the euro. Gilt yields aren’t moving much.

The Bank of England lowered interest rates, following the ECB. The Fed will take a different path this year. That will put upward pressure on the dollar.

Today, we've cut bank rate by 0.25 percentage points to 4.5%. With the progress we've made to reduce inflationary pressures in the UK economy, we've been able to take another step to make monetary policy less restrictive.