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UK votes leave: Bank reassures markets it is ‘well prepared’ for volatility

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Written by: Samantha Partington
24/06/2016
As the UK votes to leave the EU with 51.9% in favour of a Brexit, the Bank of England has stepped forward to reassure the country it is ‘well prepared’ for the expected economic volatility.

In a statement released by the Bank, governor Mark Carney said he has engaged in extensive contingency planning for the outcome and had been in close contact with the Chancellor throughout the night.

He said: “The Bank will not hesitate to take additional measures as required as markets adjust and the UK economy moves forward.

“These adjustments will be supported by a resilient UK financial system – one that the Bank of England has consistently strengthened over the last seven years.”

Carney said the substantial capital reserves and liquidity of banks, built up since the financial crisis, will give banks the flexibility they need to continue to lend to UK businesses and households during challenging times.

He said the Bank stood ready to provide more than £250bn of additional funds through its normal facilities, as a backstop, to support the functioning of the markets.

He added: “That economy will adjust to new trading relationships that will be put in place over time. It is these public and private decisions that will determine the UK’s long-term economic prospects.

“The best contribution of the Bank of England to this process is to continue to pursue relentlessly our responsibilities for monetary and financial stability.”

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