The BoE’s Brexit day: what investors expect

For equities, the more radical the easing measures are, the more positive the market response is likely to be. With the FTSE 100 moving up above its pre-referendum level, a further fall in the pound, even against such an uncertain political and economic backdrop, would help the index.

“We think the BoE should over-egg stimulus: do too much, do it early, and do everything,” said Gilles Moec, Europe economist at Bank of America Merrill Lynch. “We look for a 25 basis point rate cut, £50bn in QE and ‘credit easing’ measures. But we would not be surprised if the BoE disappointed on QE. Loosening monetary policy at this stage may have little effect.”http://www.ft.com/cms/s/0/4f36e8cc-57d5-11e6-8d05-4eaa66292c32.html#axzz4GItFNh1S