By The Telegraph (World News) | Created at 2024-10-03 06:30:34 | Updated at 2024-10-03 09:19:56
2 hours ago
The value of the pound dropped sharply after the Governor of the Bank of England said interest rate cuts could become a “bit more aggressive”.
Sterling sank as much as 0.8pc to fall below $1.32 for the first time in a fortnight after Andrew Bailey said policymakers could become “a bit more activist” about lowering borrowing costs.
The pound dropped as low as $1.317 after the comments in the Guardian, which come as inflation stands at 2.2pc, which is slightly above the Bank of England’s 2pc target.
Traders have priced in that the Bank of England will cut interest rates by a quarter of a percentage point from 5pc to 4.75pc in November.
However, the value of the pound had surged in recent weeks to as high as $1.343 after Mr Bailey previously said that policymakers would cut rates “gradually”.
Read the latest updates below.
