The pound's value has fallen following comments from Bank of England Governor Andrew Bailey, who indicated that interest rate cuts could become “a bit more aggressive.” In a Guardian interview, he indicated that if inflation trends remain positive, the Bank might adopt a “more activist” approach to lowering borrowing costs.

The Bank of England (BoE) could adopt a more aggressive stance on interest rate cuts if inflation data continues to improve, according to Governor Andrew Bailey. However, the escalating conflict in the Middle East poses risks to oil prices,

The bank’s rate-setters could be “a bit more aggressive” on lowering borrowing costs if inflationary pressures continued to wane, Bailey told the Guardian newspaper. Sterling fell to $1.3121 from $1.3268, extending its decline from last week when the currency traded above $1.34.