# Pound drops as BoE’s Bailey says rate cuts could become ‘more aggressive’

> Sterling fell about 0.7% to 1.3170 against the dollar after BoE Governor Andrew Bailey said the central bank could become more aggressive in cutting rates if inflation news stayed positive. Analysts linked part of the selloff to geopolitical risk in the Middle East driving investors into the dollar.

- Date: 2020-03-21 · published 2020-03-21T12:00:00.000Z
- Category: macro · region UK · magnitude low
- Page: https://feedsoft.ai/events/54371-pound-drops-as-boe-s-bailey-says-rate-cuts-could-become-more-aggressive
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expectations of deeper UK rate cuts weaken sterling and can strengthen the dollar, which tends to pressure dollar-priced grain and meal. The effect on feed markets is limited unless the dollar move broadens.

## Read by commodity

- DXY: bullish ▲
- GBPUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2017-11-02 | [Pound Could Remain Volatile Against Dollar and Euro as New Interest Rate Consensus Develops](https://feedsoft.ai/events/68240-pound-could-remain-volatile-against-dollar-and-euro-as-new-interest-rate.md) | -0.1% | -1.5% |
| DXY | 2019-05-01 | [Dollar rises as Fed's Powell cools bets on rate-cut](https://feedsoft.ai/events/59251-dollar-rises-as-fed-s-powell-cools-bets-on-rate-cut.md) | +0.2% | +1.1% |
| DXY | 2023-07-01 | [Oil drops 1.5% as Fed projects more rate hikes this year](https://feedsoft.ai/events/35655-oil-drops-1-5-as-fed-projects-more-rate-hikes-this-year.md) | -0.3% | -1.3% |
| DXY | 2022-10-01 | [Analysts react as Aggressive Fed hikes rates another 75 basis points](https://feedsoft.ai/events/39757-analysts-react-as-aggressive-fed-hikes-rates-another-75-basis-points.md) | -0.2% | +0.1% |
| DXY | 2023-02-01 | [Fed's Powell says could raise rates beyond December, gives nod to disinflation](https://feedsoft.ai/events/37232-fed-s-powell-says-could-raise-rates-beyond-december-gives-nod-to-disinflation.md) | +1.1% | +1.4% |

## Sources

- pilling.co.uk: https://www.pilling.co.uk/home/profiles/news-and-research/external-news/article/?category=fx&slug=pound-drops-as-boes-bailey-says-rate-cuts-could-become-more-aggressive&story_id=17595308

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.