Citi Is Constructive on Pound With Tolerance for Volatility

The transcript discusses the outlook for sterling, highlighting a risk premium and potential market outcomes amid Brexit uncertainties. It explores the implications of an EU extension request and the potential for a customs union. The Bank of England's policy challenges are also examined, with a focus on Brexit's impact on economic policy and interest rates.

What are the reasons for the risk premium associated with sterling?

How does the uncertainty regarding the EU's response to the UK extension request affect the market outlook?

What is the best-case scenario for markets according to the speaker?

What factors are currently holding back the Bank of England from normalizing policy?

What implications does the ongoing Brexit uncertainty have on the economy according to the text?