80
The pound plunged to a three-week low after BoE Governor Andrew Bailey indicated the central bank could speed up rate cuts if the job market continues to weaken. Sterling dropped to $1.3467 before a modest rebound.
Bailey cited rising slack in the economy and higher employer taxes as contributors to the slowdown. His remarks reinforced investor expectations of continued rate reductions from the current 4.25% level, following four consecutive cuts.
Recent GDP contractions and a KPMG report showing the sharpest hiring decline in two years have intensified concerns about economic resilience.
Money markets now see an 85% chance of an August rate cut, up from 76% last week, as the government grapples with inflation and falling living standards.