Published: 2024-12-19T12:25:34.000Z
GBP flows: GBP slips on 6-3 vote for no change
Senior FX Strategist
1
The MPC voted 6-3 for no chance, with the 3 votes for a cut one more than expected. Still scope for the makret to price in more easing suggesting GBP downside risks
The BoE left rates unchanged as expected, but the vote was 6-3 rather than 7-2, with Dhingra, Ramsden and Taylor all voting for a cut. EUR/GBP spiked 20 pips higher as a result, but the market is still only pricing a February cut as around a 35% chance, and is still pricing less than two 25bp cuts over the whole of 2025. This looks overly cautious, and suggests there is some downside risk to GBP from here.
