UK Gilt Supply Remains Heavy Even After BOE Ends -2-

1047 GMT - The pound has the potential to rise after data last week showed the U.K. economy unexpectedly grew very slightly in November and as investors become more confident taking on risk, MUFG analyst Derek Halpenny says in a note. If U.K. data on Wednesday show inflation slowed slightly in December, this would likely be positive for the pound, he says. Recession is "likely still on the way" but the economy's resilience in 4Q was a good sign. "With global inflation receding we view that as a positive for the pound," he says, noting that the U.K. currency "generally performs better in positive risk environments." GBP/USD falls 0.1% to 1.2211, having hit a one-month high of 1.2291 in Asian trade. ([e-mail])

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01-16-23 0614ET