Interpreting sterling

How should we think about the weak pound? One view is that it gives a welcome boost to UK exports. This idea, though, was countered last week by Ben Broadbent, deputy governor of the Bank of England. He said: "The most plausible explanation for the depreciation is that, in the eyes of the market, leaving the EU will make exporting harder and more costly. To help compensate the currency needs to be cheaper."

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