EURGBP ### **🚨 BOE Expected to Pause Easing on March 20 🚨** 🔹 **UK Real GDP** fell **-0.1% m/m** (vs. expected **0.1%**), impacted by:
- **-0.9% decline** in the **production sector**
- **-0.2% drop** in **construction output**
- **Services sector** grew **0.1%** (weaker than December’s **0.4%**)
🔹 **BOE’s Q1 GDP projection (0.4% q/q) now at risk of undershooting** 📉
🔹 **Why No Rate Cut Yet?**
- **Services inflation remains high at 5% y/y** 📊
- Swaps market pricing **50bps cuts** over 12 months, with **small odds** of an additional **25bps cut**
🔹 **GBP Outlook:** **Stagflation risks could weigh on GBP vs. EUR** 📉💱
📌 **Stay tuned for the BOE decision on March 20!** 🚀
