BOE Grapples With No-Deal Brexit Prospect: Decision Day Guide

• Another topic on the tip of market watchers’ tongues all week has been no-deal Brexit, the increased threat of which has sent the pound tumbling lower.
• The Bank of England decision on Thursday left markets confounded and likely only adds further to the uncertainty as the central bank effectively decided not to assume no-deal outcomes in its latest inflation reports, even as markets do just that.
• The markets’ reactions appear warranted given the signals from the U.K.’s government, which has doubled its spending on preparations for leaving the European Union without a deal in place, but that’s been complicated by the government's majority being cut to one.

(Source: Bloomberg)