Article by ForexTime
Bank of England Governor Mark Carney made his third public appearance on Tuesday since the Brexit vote in June 23, by giving a speech to help calm market jitters that have arisen in the past 12 days due to uncertainty surrounding the issue and consequences of the UK leaving the EU.
Carney outlined measure the central bank has in place in order to ensure stability in the financial system. He was speaking at a press conference following the release of the BOE’s bi-annual financial stability report.
Since the UK referendum that resulted in a vote to leave the EU, global markets tumbled due to uncertainty about what Europe and Britain’s future economies may looks like.
Carney said that the Bank is taking action to ensure that “we can all look ahead, not over our shoulders.”
He added: “We have a clear plan, we are rapidly putting its main elements in place, and it is working.
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Mark Carney soothed market concerns surrounding a drying up of borrowing following the referendum by increasing the flexibility of British banks to lend.
He said: “The system’s going to be there for someone who wants to buy a house or a business person with a viable plan.”
Carney also allayed any fears about the state of the British financial system, noting that all the UK’s major banks and building societies survived stress tests last year that put them through more than twice the share price fall that they experienced during the financial crisis.
Meanwhile, the BOE Governor reiterated that the Bank is ready to inject as much as £250 billion of extra capital into the financial system. He also pointed out some small positives to be taken from the economic shock of the referendum, by saying that the consequent weakening of Sterling should provide support to UK exports in the short term.
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