Pound Drops Most Since 2022 Against Euro as BOE Eyes Faster Cuts
- Sterling falls about 1% versus euro as well as the US dollar
- BOE Governor said he sees chance of more aggressive easing
Andrew Bailey said that he sees a chance of more aggressive interest-rate cuts provided that news on inflation continues to be good.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
The pound posted the biggest one-day slide against the euro since late 2022 after Governor Andrew Bailey suggested the Bank of England could take a more aggressive approach to lowering interest rates.
Sterling slumped about 1% against both the euro and the dollar after Bailey said the central bank could become a “bit more aggressive” and “a bit more activist” in its approach to cutting rates — provided inflation stayed subdued. Traders in turn bet on quicker reductions, eroding the currency’s appeal.