GBP outlook has turned bearish: Sticky inflation, slowing growth, and tight fiscal prospects tilt risks to the downside despite earlier stability versus G10.
BoE likely to cut once more, then pause: After a split August 25 bp cut, a single 25 bp cut in November is plausible, with futures sceptical about further easing. Inflation is persistent and services-led: Core ~3.8% y/y; services ~5% y/y; broad pricing pressure and elevated expectations keep disinflation progress limited.
29-08-2025 07:26 GMT
by Łukasz Zembik
