The pound falls sharply against the dollar and is heading for its worst daily loss since March 2023.

The British pound fell sharply during trading in the foreign exchange market on Thursday, impacted by less hawkish comments from Bank of England Governor Andrew Bailey, resulting in significant losses for the pound, which dropped by 1.15% against the US dollar, heading towards its worst daily loss since March 2023.

In an interview with The Guardian published today, the Bank of England Governor stated that the Bank was prepared to cut interest rates more aggressively if inflation remained weak, emphasizing that the cost-of-living pressures were not as persistent as the Bank had feared.

These comments indicate a shift in the tone of the Bank of England, which has historically maintained a more cautious stance regarding the interest rate cut cycle since it began cutting rates for the first time since the pandemic at the meeting in August, when the Bank expected increasing inflationary pressures, resulting in strong gains for the British pound at that time.

These statements sparked expectations in the major currency markets regarding the Bank of England's potential to continue cutting interest rates in the near term, and it may adopt larger rate cuts compared to what was previously anticipated.

In today's trading, the British pound fell significantly against the US dollar by approximately 1.17%, with the pound to dollar exchange rate trading near the level of 1.3111 dollars.