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BOE says will take all necessary steps to ensure stability

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The Bank of England said it would take all necessary steps to secure monetary and financial stability after a decision by British voters to leave the European Union triggered a 10 per cent fall in the value of sterling and raised the prospect of a shock to the economy.

[LONDON] The Bank of England said it would take all necessary steps to secure monetary and financial stability after a decision by British voters to leave the European Union triggered a 10 per cent fall in the value of sterling and raised the prospect of a shock to the economy.

"The Bank of England is monitoring developments closely," it said in a statement.

"It has undertaken extensive contingency planning and is working closely with Her Majesty's Treasury, other domestic authorities and overseas central banks."

The BOE has previously said that a decision to leave the EU could deliver a material hit to the British economy and push up inflation because of the expected fall in the value of the pound.

Sterling plunged to a 31-year low against the US dollar in the early hours of Friday as results from the referendum showed the "Leave" campaign was set for victory.

REUTERS

For more coverage of the EU referendum, visit bt.sg/BrexiT