BoE is ready to ensure stability
On Friday, the Bank of England told it would take all necessary measures to protect the British economy from the recent voters’ shocking decision to put the UK out of the EU, which generated instant turmoil on financial markets.
The Bank of England is currently keeping an eye open on the situation as said in the statement following the referendum victory of the “Leave”camp, which generated a 10% fall in the sterling, not to mention a dip in government bond yields to a fresh record minimum.
The BoE has already undertaken huge contingency planning. Furthermore, it’s working closely with Her Majesty's Treasury as well as other domestic authorities, not to mention overseas central banks.
The BoE has previously told that a decision to break up with the European bloc, which buys almost half British exports, could cause a powerful blow to the economy. Besides this, it could drive inflation because of the pound’s recent slump, complicating any verdict to lower interest rates.