Sterling, also known as the pound sterling, is the official currency of the United Kingdom (UK). The symbol for sterling is £, and it is divided into 100 pence. Sterling is the fourth most traded currency in the foreign exchange market, and its exchange rate is influenced by a variety of economic factors such as inflation, interest rates, and political events. The Bank of England is responsible for setting monetary policy in the UK, and it regularly makes decisions on interest rates that can impact the value of sterling.