British pound falls as inflation falls below expectations

British pound fell after the latest inflation data in the UK came in lower than expected. The UK inflation rate dropped from 3.0% in January to 2.8% in February, while the core inflation rate fell from 3.7% to 3.5%. However, Pepperstone strategist Michael Brown stated that these data seem unlikely to substantially change the policy outlook of the Bank of England, especially as the central bank has reiterated its intention to gradually lower interest rates in the future.