Bailey's unexpected dovish pivot suggests significant shift in BOE stance Previous narrative: gradual cuts only New position: faster cuts if inflation surprises Marks dramatic change from August guidance Suggests internal forecasts shifting materially Critical Context: The timing of this communication is particularly noteworthy: Only second rate cut since 2020 Comes after new government budget Inflation performing better than expected Growth concerns becoming more prominent Markets repricing rate path expectations Forward Implications: Several key considerations for markets: Rate cut timeline potentially accelerating Move away from quarterly cut assumption Economic growth/inflation balance shifting Budget impact assessment ongoing Policy flexibility increasing Trading Considerations: GBP likely to face renewed pressure Gilt curve steepening potential UK financial conditions could ease faster Rate-sensitive sectors warrant attention Watch upcoming UK CPI closely Remember: This marks potential regime shift in BOE policy approach. #BOE#Rates #GBP #Bonds