The Bank of England (BoE) is under no pressure to raise rates in the near future with markets pricing in just a 35% chance of a hike in 2019 following a string of weaker-than-anticipated growth data.
Last Monday (11 February), the Office for National Statistics revealed UK GDP expanded by 0.2% in Q4 2018, down from 0.6% in Q3 and missing analysts' expectations of 0.3% growth. Furthermore, annual GDP growth for 2018 was the lowest in six years with Brexit uncertainty weighing on business investment. The weak data was then solidified on 13 February when UK inflation fell below the BoE's 2% target in January to 1.8%, its lowest level in two years. Consumer Price Index (CPI) inflation has been on a downward trend since hitting a five-year high of 3.1% in November 2017, driven mainl...
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