UK at risk from Brexit referendum

One of the major risks for BOE in the 2016 will be Brexit, either to stay in EU or exit from the EU. Apart from this, possibilities for interest rate hike are also on the table. Market anticipates June or September policy statement for any hint regarding interest rate hike. 

BOE will be in critical situation about hiking ahead of the forthcoming referendum vote. If the UK voted to leave the EU, BoE rate hikes would be deferred for a considerable period and more stimulus may be required in that scenario. BoE will act carefully after considering the main hurdle and its outcome.