The Pound Sterling experiences a whipsaw move after BoE Governor Bailey predicted four interest-rate cuts in 2025 as he expects the disinflation process is embedded. Traders expect the BoE to keep interest rates steady at 4.75% at this month's meeting.

Sterling briefly dipped against the dollar on Wednesday after Bank of England Governor Andrew Bailey said gradual cuts in interest rates were likely over the coming year, and the process of falling inflation was well embedded.

Bank of England Governor Andrew Bailey signaled that policymakers still believe four quarter-point interest rate cuts next year is the most likely scenario as he said inflation has come down “faster than we thought it would.