Financial markets are now pricing in a shock interest rate cut for the UK at the next Bank of England meeting following remarks by its governor. Andrew Bailey stated that the bank could be 'a bit more aggressive' in its approach, citing less persistent inflation pressures. He also expressed concerns about the potential threat to prices from oil costs due to geopolitical concerns. Despite these caveats, 98% of market bets were on a rate cut of 0.25 percentage points for the Bank's meeting on 7 November. The shift in rate cut expectations led to a decline in the value of the pound against the US dollar and the euro.