The latest UK inflation figures indicated a more rapid than expected pace of disinflation, with CPI at 1.7% YoY, the lowest since April 2021.
Andrew Bailey's positivity stems from the UK inflation data showing core CPI at 3.2% YoY, the slowest increase in three years, indicating easing inflationary pressure.
The Bank of England is likely to implement a 25bp cut in November as a response to eased inflation, with the possibility of additional cuts thereafter.
Risks to the pound may be negatively affected by prospects of tighter fiscal policy, despite the current favorable inflation outlook.
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