GBPUSD slumps over 1% as BoE's Bailey hints at aggressive rate cuts

British pound slumped by over 1% against the dollar to a two-week low on Thursday as BoEs Bailey hinted at more aggressive rate cuts. Pound extended decline for the third consecutive day from a two and half year high and seems to give back further gains amid the dovish remarks. Bank of England (BoE) Governor Andrew Bailey said that there was a chance that the BoE could become a bit more aggressive in cutting rates if there’s further good news on inflation. The latest Bank of England (BoE) Decision Maker Panel (DMP) survey showed on Thursday that one-year ahead expected CPI inflation by the UK firms dropped by another 0.1 percentage points to 2.6% in the quarter to September. This along with geopolitical risks stemming from the ongoing conflicts in the Middle East, supporting the safe-haven USD is adding pressure on the British currency. Currently, GBPUSD is quoting at $1.31, down 1.20% on the day and its lowest level since March 2022.

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