Following relatively cautious guidance just two weeks ago, Bank of England (BoE) Governor Bailey’s recent press comments have weighed on sterling, and drove a softening in near-term UK rate expectations. In an interview with the Guardian last week, Bailey stated that the Bank could be “a bit more aggressive” in cutting interest rates provided the news on inflation continued to be good. This represents something of a volte-face from his remarks following the BoE meeting on September 19th. To add to the uncertainty, a day after Bailey’s comments, BoE Chief Economist Huw Pill struck a cautious tone in a speech stating it was “important to guard against the risk of cutting rates either too far or too fast".