GBPUSD Plummets Over 1% Amid BoE’s Bailey’s Dramatic Rate Cut Hints | Capital Market Insights
As of October 3, 2024, the British pound has fallen over 1% against the US dollar, reaching a two-week low, following indications from Bank of England Governor Andrew Bailey about potential aggressive rate cuts. This marks the third straight day of declines from a two-and-a-half-year high, as the currency gives back recent gains amid Bailey’s dovish comments. He suggested that the BoE might consider more substantial rate reductions if inflation continues to show positive trends. The latest Decision Maker Panel survey revealed a slight drop in UK firms’ expected one-year-ahead CPI inflation to 2.6% as of September. Concurrently, geopolitical tensions in the Middle East have bolstered the appeal of the safe-haven US dollar, further pressuring the pound. Currently, the GBP/USD exchange rate is at $1.31, its lowest since March 2022, down 1.20% for the day.
Original Story https://www.business-standard.com/markets/capital-market-news/gbpusd-slumps-over-1-as-boe-s-bailey-hints-at-aggressive-rate-cuts-124100300912_1.html
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