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Watch for central bank responses to Brexit: Jakobsen

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June 24, 2016 banking, banks, boe, bonds, brexit, central banks, cio, commodities, ecb, economist, equities, forex, fx, gbp, gbpusd, gold, jakobsen, market, markets, monetary policy, pound, rate cut, response, result, saxo, saxobank, saxobank.com, saxotradergo, saxotv, steen, steenjakobsen, sterling, stocks, trading, tradingfloor.com, tradingfloor.com video, tradingfloorcom, uk, video
Throughout the day the most important thing to watch out for will be how the Bank of England and the ECB respond to the result of the UK’s EU referendum, which saw a majority of voters in favour of leaving the EU, says Saxo Bank’s Chief Economist Steen Jakobsen.

With markets expecting a different outcome, the British pound took a serious beating as the result became clear overnight, and Sterling at one point traded at the lowest since 1985.

Jakobsen expects both the BoE and the ECB will react by providing “infinite liquidity” to the markets and the BoE may even cut rates at some point Friday to calm the markets.

Jakobsen also look at the long-term implications of the Brexit vote, arguing it could be good for Europe and economic growth.