Bank of England governor
Mark Carney has sought to calm financial market fears about the impact of the
UK’s Brexit vote by insisting that Threadneedle Street will take any measures
needed to secure economic and financial stability.
In a statement choreographed
to follow David Cameron’s announcement that he intended to step down as prime
minister, Carney said contingency plans drawn up by the Bank and the Treasury
would now swing into action.
The Bank governor said UK
banks were in better shape than they were before the 2008 financial crisis. But
he added that he was prepared to inject an additional £250bn to ensure that
financial institutions did not run short of cash during what he admitted would
be a period of uncertainty.
The Bank has also set up
arrangements with other central banks around the world to provide foreign
currency to the UK markets should that be required.
Stressing that some market
and economic volatility was to be expected in the aftermath of the Brexit vote,
Carney added: “But we are well prepared for this. The Treasury and the Bank of
England have engaged in extensive contingency planning and the chancellor and I
have been in close contact, including through the night and this morning.”
Some City analysts expect
the Bank to boost the economy by cutting interest rates or re-starting the
money creation programme known as quantitative easing, but Carney made it clear
that Threadneedle Street would not be rushed into decisions by the shock nature
of the referendum result.
Brexit panic wipes $2
trillion off world markets - as it happened
World markets have slumped
in Europe, America and Asia, as economists predict that Brexit vote will push
UK into recession
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