12.02.202607:57:32UTC+00Pound Holds Near $1.36 on Weak GDP Data

Sterling held near the $1.36 mark as investors digested weaker-than-expected UK growth data. Figures from the Office for National Statistics showed the economy expanding by 0.1% in Q4 2025, in line with the previous quarter but below the 0.2% forecast. On an annual basis, GDP grew by 1.0%, undershooting expectations and marking the weakest pace since Q2 2024. Monthly data also revealed unexpected declines in both industrial production and construction, highlighting the fragility of the recovery. The lacklustre numbers capped a difficult year for the UK economy and intensified political pressures on Prime Minister Keir Starmer. At the same time, investors continued to anticipate further monetary easing from the Bank of England. Although policymakers kept interest rates on hold at 3.75% in a split decision, they adopted a more dovish tone and signalled that inflation is likely to move back toward the 2% target from April.