The pound has weakened following a reassessment of the interest rate outlook. Market sentiment is now leaning towards a less aggressive approach to interest rate increases than initially anticipated. This change in expectations has placed downward pressure on the currency.

Analysts suggest that recent economic data has contributed to the revised outlook. Slower than expected growth figures and concerns about inflationary pressures have led the Monetary Policy Committee to adopt a more cautious stance. This has prompted investors to re-evaluate their positions, resulting in a sell-off of the pound.

The impact of this currency weakness is likely to be felt across various sectors of the economy. While it may provide a boost to exporters, it could also lead to higher import prices, potentially fueling inflation. The Bank of England will be closely monitoring these developments as it considers future monetary policy decisions.