| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 10:00 | Eurozone | GDP (QoQ) | Quarter IV | 2.3% | 0.3% | 0.3% |
| 10:00 | Eurozone | GDP (YoY) | Quarter IV | 3.9% | 4.7% | 4.6% |
GBP strengthened against most of its major rivals in the European session on Monday, as investors prepared for the Bank of England’s (BoE) policy meeting later in the week, which is expected to end with the announcement of a 25-basis-point rate increase.
The pound weakened against the CAD and AUD but rose against the rest of the major currencies.
The UK’s December CPI report, which was released almost two weeks ago, revealed that the annual inflation rate accelerated to 5.4%, the highest level in nearly 30 years. This stoked expectations for the British central bank to raise rates for the second consecutive meeting, when it will gather on February 3.
The outcomes of the BoE’s December 2021 policy meeting became a surprise for the markets, as its policymakers decided to increase its benchmark interest rate by 0.15 percentage points to 0.25% to rein in accelerating inflation. This move marked the first rate hike by a major central bank since the onset of the coronavirus pandemic.