Bank of England Governor Andrew Bailey speaks to the media at a press conference at the Bank of England on August 1, 2024 in London.
Alberto Pezzali | Alberto Pezzali via Reuters
The pound plunged more than 1% against the dollar on Thursday after the Guardian reported that Bank of England Governor Andrew Bailey said more positive inflation data could lead to more aggressive interest rate cuts.
The pound was down 1.12% at $1.3119 at 9:45 am in London. After the Bank of England held its September meeting on September 19, the tone of British policymakers was more hawkish than that of the Federal Reserve, and the pound was boosted.
Bailey tell the Guardian In an interview published on Thursday, he said the Bank of England could become “more aggressive” in cutting interest rates if inflation continues to improve.
He also said he was encouraged that cost-of-living pressures were not as persistent as previously thought, according to the Guardian.
CNBC has contacted the Bank of England for comment on the offer.
The central bank kept its key interest rate unchanged in September after lowering it by 25 basis points to 5% in August. At its September meeting, the agency expressed concerns about services sector inflation and the labor market, although overall inflation hovered near its 2% target.
GBP to USD.
This breaking news story will be updated soon.
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