UNITED KINGDOM, AND GBP

🔥📉🇬🇧 Sentiment: cautiously dovish. Watch the BoE decision on 19 March — over 60 percent of economists expect a cut to 3.50 percent. If delivered alongside falling inflation, GBP could weaken short-term as rate differential narrows. A hold would surprise markets and lift sterling sharply. 📊💷

The UK faces a pivotal moment: inflation is easing toward the 2 percent target, but growth has stagnated at 0.1 percent for 2 consecutive quarters while unemployment has climbed to a near 5-year high of 5.2 percent. The deeply divided MPC (5-4 votes at 3 straight meetings) signals the Bank is on the cusp of accelerating its easing cycle. The FTSE 100 continues to surge to record highs above 10,600, buoyed by global rotation into value stocks and rate cut expectations. Gilt yields have retreated from their 2025 peaks, reflecting the shifting policy outlook. GBP/USD hovers near 1.35 — supported by strong retail sales but pressured by widening labour market slack and fiscal uncertainty.

www.jeepson.co.uk/p/united-kingdom-and-gbp