Sterling dips as investors book profits on scorching rally

The pound has come under pressure this week, having hit its lowest since November on Monday, after Bank of England officials suggested the central bank was becoming more confident that UK inflation is subsiding, which would indicate that interest rates might fall more quickly than the market currently expects. BoE Governor Andrew Bailey last week said inflation in Britain was subsiding in line with the central bank's forecasts, while Monetary Policy Committee member Dave Ramsden, who has recently voted to keep rates where they are, said the risk of price pressures remaining too high has receded. The derivatives market reflects a belief among traders that the BoE could cut rates once at its August meeting and again by the end of the year.