UK inflation at 1.7% y-o-y, 4-month low, raises BoE interest rate cut expectations.

On September 29, the British pound fell 0.5% against the dollar as UK inflation dropped to 1.7% year-on-year, the lowest since April 2021 and below expectations. This decline raises the likelihood of a Bank of England interest rate cut in November. The pound also weakened against the euro, reflecting broader market expectations for rate adjustments amid stagnant core inflation indicators.