BoE warned of risks to Sterling on Brexit - Scotiabank

Analysts at Scotiabank explained that sterling held in very familiar territory ahead of the BoE policy decision/Inflation Report.

Key Quotes:

"The BoE left (rate and asset purchase) policy unchanged, as was widely expected. The GBP popped higher briefly on the 9-0 vote for steady policy (following speculation that some MPC members might favour more accommodation)."

"However, the BoE reduced growth forecasts and noted “increasing signs” that the EUR referendum was weighing on activity. It warned that “Brexit” may cause the GBP to fall “sharply”."