The British pound encountered a steep decline after an unexpected rate cut from the Bank of England. This move was aimed at counteracting slowing economic growth, which has been impacted by Brexit-related uncertainties and recent inflationary pressures. The GBP/USD fell to new lows, also impacted by the broader strength of the U.S. dollar. The BoE’s decision has fueled concerns about the UK’s economic resilience, creating further volatility for the pound as investors weigh the prospects of more stimulus from the central bank.