Pound slips as Labour defeat fuels UK political risk and BoE focusBy Amanda CooperMarket reaction and political risk weigh on sterlingSterling slides amid geopolitical tensionsLONDON, Feb 27 (Reuters) - The pound struggled to gain traction on Friday, as mounting geopolitical tensions prompted investors to back away from more typically volatile currencies, and after an election in northern England brought a resounding defeat for Prime Minister Keir Starmer's Labour party. Gilts firm as yields dipGilts edged up modestly, pushing yields lower. Sterling’s sensitivity to UK politicsThe pound is highly sensitive to national politics. Bank of England in focus ahead of remarksBank of England Chief Economist Huw Pill will address an economics panel later in the day. The BoE is widely expected to cut rates in March and deliver a second cut before the end of the year, based on money markets.

Source: The Guardian February 27, 2026 11:17 UTC