Pushing the BoE to the limit: what a no-deal Brexit will mean for UK exchange and interest rates

The absence of a trade agreement between UK and EU will yield further depreciations of the pound relative to leading currencies, explain Michael Ellington and Costas Milas. This will then lead to a sharp cut in the Bank of England's policy rate and to another round of quantitative easing. In other words, a no-deal Brexit will push the Bank of England to the limit.