Shortly after the start of the review period (3 March), the European Central Bank (ECB) announced new easing measures including a deposit rate cut, a credit-easing scheme and a corporate bond purchase programme. Later in March, the Federal Open Market Committee (FOMC) reduced their forecasts for the path of policy rates.
Partly as a result of this fresh monetary policy stimulus, international risky asset prices continued to recover from the trough they reached in mid-February.
UK asset prices became increasingly influenced by expectations of the outcome of the United Kingdom’s referendum on European Union (EU) membership, held on 23 June.
Shortly before the end of the review period (27 June), the United Kingdom voted to leave the EU. There was significant market volatility as this result became clear, including large falls in sterling exchange rates, interest rates and UK bank share prices.
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