HALISTER1: Brexit to Make Pound ‘Whipping Boy’ in Currency Markets: Kames

Brexit to Make Pound ‘Whipping Boy’ in Currency Markets: Kames

(Bloomberg) -- Pound weakness to persist as BOE pursues looser monetary policy to limit the economic fallout, Stephen Jones, chief investment officer at Kames Capital, says in interview in Edinburgh.
  • “You should be thoughtful about assuming sterling has done all the depreciation that it needs to do”
  • BOE may respond to the economic slowdown by cutting rates twice in 2016, to “effectively take cash rates in the U.K. to zero”: Jones
  • Kames recommends holding govt bonds, credit, due to ECB quantitative easing
  • “The fact that we have a change of status with all its uncertainty means sterling is the whipping boy in foreign exchanges”
  • CHF, JPY, USD are all “worth owning”
  • NOTE: Get Ready for a U.K. Recession, Lower Interest Rates and More QE Link
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
2539Z GR (European Central Bank)

People
Stephen Jones (Kames Capital PLC)

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