Based on the macroeconomic data provided, it is evident that the GDP growth in the UK has been weaker than expected. The QoQ GDP growth rate for Q4 was forecasted to be -0.1%, but it turned out to be -0.3%. Similarly, the MoM GDP growth rate for December was forecasted to be -0.2%, but it came in at -0.1%. Furthermore, the YoY GDP growth rate for Q4 was forecasted to be 0.1%, but it ended up being -0.2%.
These disappointing GDP figures are likely to have a negative impact on the value of the GBP. A lower GDP growth indicates a weaker economy, which can lead to reduced investor confidence and a decrease in demand for the currency. As a result, we can expect the GBP to depreciate against other major currencies.
In terms of monetary policy, these weak GDP figures may prompt the central bank (Bank of England) to adopt a more accommodative stance. A sluggish economy typically calls for measures to stimulate growth, such as lowering interest rates or implementing quantitative easing. These expansionary monetary policies can help boost economic activity and support the currency.
Overall, the weaker-than-expected GDP growth in the UK is likely to put downward pressure on the GBP and may lead to a more accommodative monetary policy stance. However, it is important to consider other factors and data points to get a comprehensive understanding of the overall economic situation and its implications on currency and monetary policies.