Sterling has been pulled in two directions. On one hand, 0.0% GDP growth in January strengthens the case for lower interest rates. On the other, the jump in oil prices makes it harder for the Bank of England to sound relaxed about inflation when it makes its decision on Thursday. Before that, we have the UK’s unemployment and earnings data on Thursday too, but the markets may be primarily focused on the tone set by BoE rate setters.
GBP: Flat GDP makes the BoE’s job harder
Christopher Nye
on March 16th, 2026 
