The pound fell the most in more than two weeks as Bank of England policymakers signalled further monetary easing is possible amid economic uncertainty after the UK voted to leave the EU.

Speculators that are the most bearish on sterling in nearly 25 years may be vindicated by yesterday’s survey showing Brexit is probably hitting Britain harder than markets previously envisaged.

Pound traders are getting a reality check as the latest survey signals the outcome of the UK’s referendum on whether to quit the EU is still too close to call.

Mario Draghi got conflicting signals on inflation in April, as the European Central Bank considers taking unprecedented steps as soon as next week to avert the risk of deflation.

The worry about the Bank of England’s new policy of forward guidance is not so much that the market doesn’t appear to believe it, though that can’t help, as the extent to which the whole plan depends on house price gains.