British Pound skids below $1.28 mark after BoE rate cut

The Great Britain pound tripped and fell below $1.28 mark, its lowest level in nearly a month on Thursday following Bank of Englands decision to trim benchmark interest rates. BoE Governor Andrew Bailey noted that the overall inflation trajectory is closer to the 2% target compared to the median forecast while delivering a 25 basis point rate cut. The Bank rate had been held at a 16-year high of 5.25% since August 2023. The central bank cut its main interest rate for the first time since the Covid pandemic broke out in 2020. UK's 10-year Gilt yield extended the decline to the 3.9% level, the lowest in six months. Meanwhile, the US Federal Reserve on Wednesday left its key lending rate unchanged, but noted "some further progress" had been made in bringing inflation down. GBPUSD, at the time of writing, was quoting at $1.2740, almost flat on the day after having tumbled nearly 1% in the previous session.