The pound euro (GBP/EUR) exchange rate is holding steady just below €1.16, a 5-month high.
The pound is flat despite cooling UK grocery inflation. Worldpanel data showed food inflation eased to 4% in late January, the lowest since April.
The data comes ahead of the BoE rate decision on Thursday. Inflation remains elevated at 3.4%, and the BoE is expected to hold rates at 3.75%.
The euro is also little changed as investors await eurozone inflation data and the ECB decision.
French inflation was cooler than expected at 0.4% YoY, down from 0.7%.
The ECB is expected to leave rates unchanged. Some policymakers are wary of the euro’s strength against the USD, adding deflationary pressures.