The pound dropped on Wednesday after data showing British inflation slowed more than expected in September, making it easier for the Bank of England to cut interest rates further this year. The pound dropped 0.

Inflation in the U.K. has fallen to its lowest level in more than three years, a drop that has cemented market expectations that the Bank of England will lower interest rates at its next policy meetin

The British pound plunged below $1.30 and government bond yields dived after a report showing U.K. inflation dropped sharply to its lowest level in more than three years prompted traders to increase bets on Bank of England interest rate cuts.

UK inflation drops to just 1.7% in September, weakening pound and raising hopes of an interest rate cut in November

LONDON (Reuters) -British inflation fell by more than expected last month, including key measures watched by the Bank of England, according to data on Wednesday that bolstered bets on an interest rate cut next month.