GBPUSD falls more than 1% as BoE’s Bailey hints at aggressive rate cuts | Capital market news

Sterling fell more than 1% against the dollar to a two-week low on Thursday as the BoE Bailey hinted at more aggressive rate cuts. Sterling extended its decline for a third straight day from a two-and-a-half-year high and appears to be ceding further gains amid dovish remarks. Bank of England (BoE) Governor Andrew Bailey said it was possible the BoE could be a little more aggressive in cutting rates if further good news on inflation emerges. The latest survey from the Bank of England’s (BoE) Decision Maker Panel (DMP) showed on Thursday that expected one-year UK business CPI inflation fell by a further 0.1 percentage point to 2, 6% during the quarter ended September. This, added to geopolitical risks arising from ongoing conflicts in the Middle East, support for the safe-haven dollar, adds pressure on the British currency. Currently, GBPUSD is trading at $1.31, down 1.20% on the day and its lowest level since March 2022.

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