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.

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 pound slid to its lowest in two weeks versus the dollar following dovish comments by Bank of England Governor Andrew Bailey.