Sterling fell after the latest UK inflation data came in below expectations. Inflation in the UK fell from 3.0% in January to 2.8% in February, and core inflation fell from 3.7% to 3.5%. However, Michael Brown, strategist at Pepperstone, said the data did not appear likely to materially change the BoE's policy outlook, especially as the central bank reiterated that it would gradually cut interest rates in the future.