Markets Confounded by BOE Brushing Aside Risk of No-Deal Brexit
- Pound is hovering near the lowest level in more than two years
- Investors are pricing in a 55% chance of a rate cut this year
This article is for subscribers only.
If the Federal Reserve’s policy stance was somewhat puzzling, the Bank of England’s decision a day later has left markets utterly clueless.
The U.K. central bank’s refusal to acknowledge the risk of a no-deal Brexit, which has driven the pound to a 2 1/2-year low, has disappointed investors who expected the institution to bring some clarity to the matter.