BOE says will take all necessary steps to ensure stability

[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

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