EUR/GBP flat lines near 0.8330 in Thursday’s early European session.
BoE policymakers support a gradual policy-easing approach.
The preliminary German CPI inflation data for November will be in the spotlight on Thursday.
The EUR/GBP cross holds steady around 0.8330 during the early European session on Thursday. The cautious stance and reduced bets of the Bank of England's (BoE) cutting interest rates in December provide some support to the Pound Sterling (GBP) and drag the cross lower.
The BoE officials remain cautious on rate reductions. The BoE Deputy Governor Clare Lombardelli supported the case of BoE pauses easing at the December meeting, citing that “I do worry [that] we still have services inflation in this country consistently at levels above their pre-Covid average, well above rates that are consistent with the [2%] inflation target.” Lombardelli further stated that she needs to see more evidence of cooling price pressures before she backs another interest rate cut.
The European Central Bank (ECB) policymakers express concerns about the Eurozone's current and future economic growth. The rising speculation that the ECB will have to implement aggressive interest rate cuts to prop up the faltering regional economy could weigh on the Euro (EUR) against the GBP in the near term.
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