Halister News

(Bloomberg) -- When markets open fully, the implied probability of a BOE interest rate cut this year likely will rise well above 50% vs 25% yesterday, Samuel Tombs Pantheon’s chief U.K. economist writes in emailed comments.

• Current market instability reduces the odds of another U.S. rate hike in the coming months
• Unless a swift deal can be done, the U.K. is likely to enter

recession as businesses hold back from investing, credit costs rise, import prices soar, squeezing households’ spending power * While lengthy trade negotiations with the E.U. will ensue, British exporters’ access to the single market, and to markets in other countries that have free trade agreements with the E.U., would be impaired

• Given that BOE governor Mark Carney has said recession risk, BOE will act soon, though will need some hard data first , Danske Bank analyst Mikael Olai Milhoj writes in emailed comment; August seems like a good option
• NOTE: Pound plunges to lowest in more than 30 years as Brexit looms