Behavior of the Bank of England and the Pound Sterling in the Conditions of Brexit Uncertainty

Abstract

The list of sectors affected by the Brexit process include the pound sterling and including the decisions of the Bank of England, which is its regulatory body. Impacts on the Brexit process have largely occurred since the 2016 referendum. This gives us reason to believe that the main indicator influencing monetary policy in 2016-2020 is the economic and political uncertainties created by the information caused by Brexit. The purpose of the study is to analyze the fluctuations in the national currency due to the Brexit effect and the reactions of the Bank of England to this process. We can consider the Brexit process as the peak of Euroscepticism in the United Kingdom. This issue has also been discussed in the European Union for years. Although the Brexit process actually took place on January 31, 2020. However, Brexit uncertainty is having an impact on the economy after certain announcements. Between 2016 and 2020, the pound and the Bank of England experienced a number of historic lows.