Published: 2026-02-05T12:10:26.000Z
EUR/GBP and GBP/USD flows: March cut and then more
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GBP has sold off after the surprise 5-4 vote at the BOE meeting, as most had expected a non-event and maybe 1-2 members voting for a cut.
It only needs Bailey to switch in March and a 25bps could be delivered versus this morning money market expectations of July. No mention of gradual downward path in the BOE statement and instead a more dovish 'On the basis of the current evidence, Bank Rate is likely to be reduced further.' This is a strong pointer to March especially given the vote, but the money market will now likely talk about a further 25-50bps more confidently. EURGBP has scope to 0.8700 and could go to 0.8750.