Bank of England Governor Andrew Bailey has suggested that the central bank is planning to implement four quarter-point interest rate cuts in the coming year due to a faster-than-expected decrease in inflation.

Bailey mentioned in an interview for the Financial Times Global Boardroom event that the market's expectations align with the bank's November forecast, which aims to bring inflation down to the bank's 2% target.

Traders have responded to Bailey's comments by increasing their expectations for further rate cuts, indicating a change in market sentiment. The central bank's approach seems to be adaptable to the changing economic situation, with policymakers optimistic about achieving their inflation goals through these anticipated adjustments.