Pantheon Macroeconomics on the BoE, post-CPI, writes " Inflation miss too small to stop a March rate cut, but stubborn services inflation means a second cut this year is far from certain."

Pantheon Macroeconomics on the BoE, post-CPI, writes " Inflation miss too small to stop a March rate cut, but stubborn services inflation means a second cut this year is far from certain."

Pantheon Macroeconomics suggests that while the UK CPI miss is not significant enough to preclude a rate cut in March, the persistent nature of services inflation introduces uncertainty regarding a potential second cut this year. This indicates that the Bank of England may still pursue easing, but the inflation trajectory could complicate its decision-making process, impacting GBP sentiment and fixed income expectations.