• The UK GDP is foreseen posting a marginal contraction in Q4.
• The Bank of England expects Gross Domestic Product to gradually regain its pace in the next few quarters.
• Pound Sterling risks extra losses while below the 200-day SMA. 

The UK’s Office for National Statistics (ONS) will release the advanced prints of the Q4 Gross Domestic Product (GDP) on Thursday.

At the Bank of England's (BoE) latest gathering, the Monetary Policy Committee (MPC) anticipates a slow but steady uptick in GDP growth over the upcoming quarters.

If GDP prints meet markets’ consensus, the UK economy would have entered into a “technical recession” following the 0.1% contraction recorded in the previous quarter.

In addition, BoE’s officials suggested that approximately two-thirds of the effect of heightened interest rates on GDP levels have already materialized.

According to investors’ projections, the BoE is expected to be one of the latest central banks to start reducing its policy rates. On this, while traders see the Federal Reserve (Fed) and the European Central Bank (ECB) cutting rates around the summer, the “Old Lady” is seen kicking off its easing cycle later in the year, with the September meeting being a likely candidate