The pound regained some ground on Friday after dropping on Thursday when the Bank of England cut interest rates and halved its growth forecast for the year.

The pound sterling fell sharply following the Bank of England’s decision to cut interest rates, a move aimed at supporting the struggling UK economy amid ongoing concerns over sluggish growth and rising inflation.

Investors grappled with a gloomy set of Bank of England forecasts on Thursday that complicate the outlook for UK assets, with sterling set for its biggest one-day fall in four weeks even as bond yields held broadly steady.