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The Bank of England's interest rate cut does not prevent the rise of the pound, as the UK prepares to reach a trade agreement with the United States.
On May 8, the pound rose on Thursday after the Bank of England announced a widely expected interest rate cut. At the same time, the UK is preparing for a trade deal with the US. The Bank of England cut its benchmark interest rate by 25 basis points to 4.25%, but as Trump's tariffs weighed on global growth, policymakers voted surprisingly divided into three factions. GBP/USD rose 0.25% on the day to 1.3324, rebounding from a daily low of 1.3242 before the interest rate decision. Britain's FTSE gains narrowed slightly. UK government bonds came under pressure, with the UK 10-year yield up 3.5 basis points on the day to 4.491%.