The GBPUSD exchange rate experienced a significant decline during the European trading session on Wednesday (12/17/2025) following the release of inflation data (consumer price index/CPI) from the UK. This data influenced expectations regarding a potential interest rate cut by the Bank of England (BoE).
By the afternoon, GBPUSD plummeted more than 100 pips to hit 1.33114, marking its lowest point in the past week.
The figures released from the UK indicated that the CPI rose by 3.2% year-on-year (YoY) in November, falling short of the 3.4% forecast by Trading Central and down from the previous month’s 3.6%.
Additionally, core inflation, which excludes food and energy prices, also rose by 3.2%, again lower than the expected 3.3% and down from October’s 3.5%.
This slowdown in inflation growth bolsters the expectation that the BoE may lower interest rates by 25 basis points to 3.75% in tomorrow’s meeting. Consequently, this situation is applying pressure on the GBPUSD pair.
