Pound’s Weekly Drop Is Most Since July on Brexit, BOE Outlooks
- Sterling damped by unpredictable Brexit negotiations: Chapman
- Analysts in Bloomberg survey see pound at $1.28 by end-2016
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The pound fell the most this week since early July amid speculation that potentially painful Brexit negotiations will prompt the Bank of England to ease monetary policy further.
Sterling dropped against 15 of its 16 major peers on Friday as the Telegraph newspaper cited five unidentified senior EU officials saying that Britain will face a “bureaucratic nightmare” in the talks, and that “reality” even may persuade it to not follow through with the voter-approved exit. While the BOE’s Monetary Policy Committee members voted unanimously to keep its key interest rate and asset-purchase target unchanged on Thursday, they signaled further easing cannot be ruled out.