BOE's Broadbent Warns Disruptive Brexit Means Deeper Pound Hit

The extent of the Brexit’s disruption to trade and the economy will determine how much the pound falls, according to Bank of England Deputy Governor Ben Broadbent.

“The greater the economic dislocation, the worse for the exchange rate it’s going to be -- there’s a direct relationship,” he told lawmakers on Tuesday. The current level of the pound has priced in a slew of possible Brexit scenarios, from “better” to “worse,” which will determine sterling’s move depending on the eventual outcome, he said.