GBPUSD | Market outlook

Q3 GDP Results
- QoQ: Rose by 0.1% (below the forecast of 0.2%).
- YoY: Increased by 1.0% (above the expected 0.1%).
- September GDP: Declined by 0.1% MoM and 1.0% YoY, missing estimates of 0.2% MoM and 1.1% YoY.

Economic Pressures
- A sharp increase in the tax burden on businesses, announced by Chancellor Rachel Reeves, is straining the economy.
- September industrial production dropped by –0.5% MoM (forecast: 0.1%) and by –1.8% YoY (forecast: –1.2%).

Monetary Policy Outlook

- The Bank of England may consider accelerating monetary easing to support growth.
- However, divergence exists within the board. Catherine Mann advocates maintaining current interest rates until inflation risks, including political uncertainties like Donald Trump’s potential election as US President, subside.
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