Pound drops most since 2022 against euro as BOE eyes faster cuts

Andrew Bailey, Governor of the Bank of England, speaks during the Bank of England Monetary Policy Report press conference at the Bank of England, London. Picture date: Thursday August 1, 2024.

The pound posted the biggest one-day slide against the euro since late 2022 after Governor Andrew Bailey suggested the Bank of England could take a more aggressive approach to lowering interest rates.

Sterling slumped about 1% against both the euro and the dollar after Bailey said the central bank could become a “bit more aggressive” and “a bit more activist” in its approach to cutting rates — provided inflation stayed subdued. Traders in turn bet on quicker reductions, eroding the currency’s appeal.