GBP to fall 15% on Brexit? - Nomura

Analysts said that their expectation of a GBP devaluation of 15% in the event of a Brexit would help the BoE’s monetary policy objective in the long run.

BoE preview: a picture is worth a thousand words

Key Quotes:

"A GBP devaluation of 15% in the event of a Brexit would help the BoE’s monetary policy objective in the long run as the economy adjusts to the shock factor of a Brexit."

"If poor market functioning caused GBP to fall in an extreme fashion though, BoE FX intervention is not out of the question. But this is only a possibility in an extreme shock scenario – i.e. it is the tail risk of a tail risk in our view."