Quote Originally Posted by The Times
The politicisation of the Bank of England and a weakening economy risk turning the pound into an “emerging market like” currency, analysts at Bank of America have warned.

In a downbeat assessment of the UK’s economic prospects, the impact of Brexit, and the potential politicisation of monetary policy, the US investment bank believes investors will dump the British currency after sustained weakness this year.
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Sharma said the Bank’s credibility has suffered over its failure to acknowledge the full impact that Brexit will have on the UK economy. He added that although UK rate-setters began raising interest rates before counterparts in the US and the eurozone, the pound has gained no “first mover advantage”.

“We believe that the BoE is hiking for a different set of reasons than the Federal Reserve,” Sharma said. “Whereas the Fed is hiking against the backdrop of a strong domestic economy, the Bank is facing a number of unique supply challenges — most notably Brexit. As a result, each rate hike has been met by a confusing communication strategy as the Bank finds it increasingly difficult to sell rate hikes on its merits.”
https://www.thetimes.co.uk/article/9...e9871f5b5364e4