The British pound fell more than 1% against the U.S. dollar Thursday, after Bank of England Governor Andrew Bailey told the Guardian newspaper that more good news on inflation could allow the central bank to be "a bit more activist" in its approach to rate cuts.

Andrew Bailey tells the Guardian the Bank could become a “bit more aggressive” in cutting interest rates if news on inflation continued to be good

Andrew Bailey, Governor of the Bank of England, gestures as he addresses the media during a press conference at the Bank of England in London on Aug. 1, 2024. The British pound fell more than 1% against the U.

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

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 $1.3125 in early trading,