The Bank of England Governor Mark Carney has said its ready to intervene and provide additional help to prop up financial markets.
He delivered a statement designed to reassure markets:
“We are well prepared for this. The Treasury and the Bank of England have engaged in extensive contingency planning.
The Bank will not hesitate to take additional measures as required as those markets adjust and the UK economy moves forward.
bankofengland</a> Guv: Will take time to establish new relations with <a href="https://twitter.com/hashtag/EU?src=hash">#EU</a> <a href="https://t.co/KyA0cbHse4">pic.twitter.com/KyA0cbHse4</a></p>— EconomicTimes (EconomicTimes) June 24, 2016
As a backstop, and to support the functioning of markets, the Bank of England stands ready to provide more than 250 billion of additional funds through its normal facilities.
The Bank of England is also able to provide substantial liquidity in foreign currency, if required.”
The European Central Bank moved quickly to bolster the words of Mark Carney issuing a statement saying:
“The ECB stands ready to provide additional liquidity, if needed, in euro and foreign currencies.
The ECB has prepared for this contingency in close contact with the banks that it supervises and considers that the euro area banking system is resilient in terms of capital and liquidity.
The ECB will continue to fulfil its responsibilities to ensure price stability and financial stability in the euro area.”