The British pound has fallen below $1.311, marking its lowest point in nearly four weeks amidst growing expectations for **aggressive rate cuts** in November. Bank of England Governor Andrew Bailey has hinted at a shift towards a more active approach to monetary policy. However, Chief Economist Huw Pill has advocated for a more measured response.
In a contrasting economic landscape, the UK construction sector is witnessing its strongest growth in over two years; yet, concerns persist regarding potential **spending cuts** and **tax hikes** in the forthcoming budget scheduled for October 30.
On the other side of the Atlantic, a robust US jobs report has tempered expectations for significant **Federal Reserve rate cuts**. As of Monday, October 7, the GBP/USD exchange rate decreased by 0.0038 or 0.29%, settling at 1.3080, down from 1.3118 in the prior session.
Looking ahead, analysts predict the British pound will trade at approximately 1.32 by the end of this quarter, while a longer-term forecast suggests a decrease to 1.27 in the next twelve months.