Brexit Political Risk Is Key Driver of Pound, Says BlackRock's Turnill

The video discusses the impact of Brexit on the British pound, highlighting political risks and market uncertainties. It explores various Brexit scenarios, including the potential for a lengthy transition deal, and their implications for the UK's position in Europe. The discussion also covers market reactions, the role of the dollar, and the possibility of interest rate changes due to Brexit-related factors such as inflation and sterling weakness.

What was the initial reaction of the pound to the expectations of a Brexit deal?

• The pound was unaffected.

• The pound surged.

• The pound remained stable.

• The pound declined.

What is the main reason for the uncertainty surrounding Brexit?

• Stable economic conditions in the UK.

• Strong political consensus on Brexit.

• Lack of clarity on Brexit's implications.

• Clear understanding of Brexit's implications.

How has the trading community reacted to the uncertainty of Brexit?

• By taking significant risks.

• By avoiding any risks.

• By focusing on the Euro.

• By investing heavily in the pound.

What could prompt the Bank of England to raise interest rates?

• Political stability.

• Stable inflation.

• Sterling weakness and inflation.

• A strong pound.

What is the Bank of England's likely stance on interest rates in the absence of significant changes?

• Maintain a neutral policy.

• Decrease rates significantly.

• Increase rates immediately.

• Completely ignore economic indicators.