Brexit is an additional adjustment to a 'risky trinity': BIS

Singapore

THE prospect of the United Kingdom leaving the European Union represents another risk that central banks around the world now have to contend with, even as they collaborate to combat a "risky trinity" that may destabilise a fragile global economic recovery.

Terming Friday's results of a UK referendum that favoured a UK-EU split, or "Brexit", as an "additional adjustment", Jaime Caruana, general manager of the Bank for International Settlements (BIS), or the "bank for central banks", said on Sunday: "The world economy conveys a sense of unfinished adjustment and fragile confidence."