LONDON, April 24 Reuters The pound eased on Wednesday, surrendering some gains from its biggest oneday rally in four months the previous day, after a softer reading of monthly U.S. business activity battered the dollar.

Sterling was down 0.1 at 1.2435, having risen 0.8 on Tuesday, the most in one day since midDecember. The euro was steady against the pound at 85.99 pence.

The pound has come under pressure this week, having hit its lowest since November on Monday, after Bank of England officials suggested the central bank was becoming more confident that UK inflation is subsiding, which would indicate that interest rates might fall more quickly than the market currently expects.

BoE Governor Andrew Bailey last week said inflation in Britain was subsiding in line with the central bank39;s forecasts, while Monetary Policy Committee member Dave Ramsden, who has recently voted to keep rates where they are, said the risk of price pressures remaining too high has receded.

The derivatives market reflects a belief among traders that the BoE could cut rates once at its August meeting and again by the end of the year.

Markets show traders believe there is about a 40 chance of a June cut, something roughly half the economists surveyed by Reuters for a poll published on Wednesday expect.

While we would argue that prospect remains plausible it is also clear that the MPC remains divided and that reaching the required majority to cut rates will be difficult over the coming months,…