The UK (6th largest economy) has unique inflation dynamics and a central bank that often moves differently from the Fed and ECB. Key impact channels: (1) UK CPI — tends to run hotter than U.S./EU due to structural factors (energy pricing, Brexit-related supply constraints). Hot CPI → BOE hawkish → GBP strengthens but FTSE 100 falls (FTSE is 75% international revenue, hurt by strong GBP). (2) BOE interest rate split votes — the MPC often splits 5-4 or 6-3, making vote counts as important as the rate decision itself. Dovish surprises (more cut votes) weaken GBP, boost FTSE 250 (more domestically exposed). (3) UK employment and wage data — UK wage growth has been persistently above 5%, a key reason for BOE caution. (4) FTSE 100 vs. FTSE 250 divergence reveals global vs. domestic sentiment — FTSE 100 (banks, miners, oil) benefits from weak GBP and commodity strength. (5) UK gilt market stress (as in September 2022 pension crisis) can have global contagion effects through institutional investor repositioning.