The Bank of England said Friday that it will take all necessary measures to protect the UK economy following the decision of its citizens to leave the Union measures European, generating an immediate turmoil in financial markets.
“the Bank of England is watching developments closely,” it said in a statement, after the victory of Brexit in the referendum provoked a drop of 10 percent in the value of sterling and a sinking performance of sovereign bonds to a new low.
“It has carried out extensive contingency planning and is working closely with the Ministry of Finance, other national authorities and foreign central banks, “he said.
Bank of England (BOE, for its acronym in English) had said earlier that the decision leaving the EU, which buys nearly half of the British ones exports could mean a material setback to the economy. But it could also push up inflation by the impact on the pound, complicating any decision to cut interest rates.
futures rates interest felt that there is a chance of a cut at the end of the year, an expectation that analysts also expected to be shared by the debt markets.
the economy was already slowing as the referendum approached and BoE governor Mark Carney said in may that it would suffer a technical recession -a contraction two quarters consecutively- if he won the option to leave the EU.
Carney said earlier this year that a win the Brexit also would test the “kindness of strangers” who finance the large current account deficit of the country.
the governor was scheduled to undergo a round of interviews with various TV channels during Friday.
No comments:
Post a Comment