BOE Move Turns Pound's Focus to Brexit Risk, Says Sharma

The transcript discusses the market's initial positive reaction to a decision, followed by a pullback in sterling due to comments by Mark Carney. The focus shifts to the political risks associated with Brexit negotiations, emphasizing the importance of the withdrawal agreement between the EU and the UK. The potential for a hard Brexit is seen as bearish for sterling, with concerns about economic uncertainties and the impact on growth.

What does the text suggest about the post-referendum macroeconomic environment?

What is the significance of the withdrawal agreement between the EU and the UK according to the text?