1413 GMT - Sterling's recent appreciation against the dollar isn't enough to materially lower U.K. inflation or encourage the Bank of England to cut interest rates at a faster pace, Capital Economics economist Ashley Webb says in a note. Sterling's rise is mostly dollar driven, he says. The dollar accounts for only 22% of the sterling trade-weighted index. Even if the recent appreciation is sustained, it would likely only reduce inflation by 0.2 percentage points in 2027, he says. Given inflation rose to 3.4% in December, the BOE would probably "welcome a bit more disinflationary pressure." The BOE announces a policy decision on Thursday. Sterling falls 0.3% to $1.3765, having reached a four-and-a-half-year high of $1.3867 Tuesday, LSEG data show. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

January 30, 2026 09:13 ET (14:13 GMT)

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