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 0.8% 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 2.2%, which is slightly above the Bank of England’s 2% target.
Traders have priced in that the Bank of England will cut interest rates by a quarter of a percentage point from 5% to 4.75% 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”.
FTSE 100
The UK's flagship share index, the FTSE 100, was up 11-points, at 8,314 shortly after opening this morning.
Brent crude oil futures were up 1.42%, trading at $74.95 a barrel.
Companies reporting today