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.

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French Inflation Rate YoY Final (Jan) Y/Y 0.3% vs. Exp. 0.3% (Prev. 0.8%)

French Inflation Rate MoM Final (Jan) M/M -0.4% vs. Exp. -0.3% (Prev. 0.1%)

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."

[MARKET UPDATE] Market pricing is, post-UK CPI, even more torn between a March vs April cut

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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.

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