Sterling less than sterling as Britain deals with Brexit fallout

SINGAPORE (July 26): It has only been slightly more than month since the UK voted to leave the European Union and already, government policies such as a balanced UK fiscal budget by 2020 have been scrapped, while governor of the Bank of England (BOE) Mark Carney has reassured the market that the central bank stands ready to ease monetary policy to support growth and return inflation to the targeted 2%.

To be sure, the London FTSE 100 has rebounded from its trough since the June 23 referendum, while the British pound, which fell 6% to a 30-year low of 1.28 to the US dollar on July 11, has stabilised above 1.30.

Nevertheless, much uncertainty still lies ahead for the UK economy. One huge uncertainty is the exit negotiations for Britain to secede from the European Union.

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