We believe markets are now broadly priced for an extended period of the status quo – where the current impasse remains, but the UK remains in the EU.

We expect volatility, along with a potential rise in UK sovereign yields and strengthening of the pound.

We see a number of U.K. assets pricing in a relatively high chance of a disruptive Brexit.

Recent economic data casts doubt on the anticipated BoE rate hike.

A slow and gradual rate hiking cycle may still be faster than markets think.

The UK is now entering a period of significantly greater uncertainty as the political outlook has become more clouded.

Once again the British electorate surprised markets, opening the door for easier fiscal policy and a “softer” Brexit.

We do not believe investors are being adequately compensated to take risk associated with the outcome of the 8 June election.

We caution investors on sterling and UK gilts as Brexit negotiations commence and the likelihood of a “hard Brexit” remains high.

The UK is about to enter a period of potential uncertainty, and the greatest gift the Chancellor can provide to the government is economic protection.

How can the BOE justify doing nothing – holding interest rates steady and offering no strong view on the direction of monetary policy – while also increasing its growth forecasts, at a time when it already expects inflation to overshoot the target for the next three years?

Have market participants overreacted to the tone of the Brexit debate, or is there more volatility to come?

Today’s four policy moves certainly constitute a decisive and comprehensive package. Now the two critical questions are will it work, and what are the investment implications?

Our expectation is that growth will fall to around 0% or slightly above over the next 12 months.