<ul data-eligibleForWebStory="false"><li>The pound dropped to a three-week low following comments made by the governor of the Bank of England suggesting more interest rate cuts if the job market slows.</li><li>Andrew Bailey expressed concerns about a potential economic slack due to higher taxes squeezing employers, leading to a downward path for interest rates.</li><li>Investor expectations of an August rate cut increased to 85% after Bailey's remarks, with the pound slipping to $1.3467 - its lowest level since 23 June.</li><li>The UK economy faces challenges as inflation remains above target, the government imposes tax increases on employers, and hiring by UK businesses declines.</li></ul>

Pound drops after Bank of England says it could cut interest rates more if jobs market slows

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