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Last week’s meeting minutes from the MPC revealed that there’s one more member, Martin Weale, that is supportive of a rate hike. Weale joined Sentance that has voted for a hike for quite a long time.

But Weale’s vote came before the horrible GDP figure which showed that the British economy squeezed by 0.5% in Q4, totally different from the expectations for further growth.

Weale said this:

“But were the recent weakness to mark the start of a sustained new downturn, inflationary pressures would be likely to fade without a bank rate increase.” … “This is alarming — a faltering economic recovery implies human misery and a waste of resources — but not surprising,” he said.

So, the case for a rate hike in Britain is weakening, despite the high inflation.

For technical levels, see the GBP USD forecast.