• Disappointing CPI print for the BoE - headline CPI highest since Mar 24

• Slight reprieve from services CPI at 5%, below BoE f/c

• Given hot CPI and stagnant growth, response in GBP has been muted

• Stagflationary impulse is overall a negative for the currency

• While BoE easing bets have unwound to 50bps from 54bps

• Typically, GBP positive but there is a limit to how much cuts unwound

• Path of least resistance remains in favour of quarterly cuts (75bps(

• In turn, GBP is unlikely to receive a sustainable lift

• Bias remains skewed to the downside for GBP/USD
BoE easing priced

(Justin McQueen is a Reuters market analyst. The views expressed are his own.)