Brexit: BoE ready to underpin sterling, says Carney
Updated : 11:36
Bank of England governor Mark Carney said the bank was ready to support sterling after the currency plunged in the wake of the UK's decision to leave the European Union.
Carney committed more than £250bn of additional funds to bolster what he called normal market operations.
Speaking immediately after Prime Minister David Cameron's resignation Carney said the Treasury and the BoE had "engaged in extensive contingency planning and the chancellor and I have remained in close contact including through the night and this morning".
"It will take some time for the UK to establish a new relationship with Europe and the rest of the world. So some market and economic volatility can be expected as this process unfolds, but we are well prepared for this," he said.
"The Bank of England will not hesitate to take additional measure as required, as markets adjust."
Carney reiterated Cameron’s comments that there would be no initial change in the way British people can travel, in the way the UK’s goods can move or in the way its services can be sold.
“UK banks now have over £600bn of high-quality liquid assets.”
“We expect institutions to draw on this funding if and when appropriate, just as we expect them to draw on their own resources.
“The bank will continue to consult and cooperate with all relevant domestic and international authorities”
Carney said the economy will adjust to different trading relationships that will be put in place as part of Britain's departure from the European Union.
“We have taken all the necessary steps to prepare for today’s events, and in the future we will not hesitate to do what’s required.”
Earlier, the Bank of England issued a statement, saying it is monitoring developments closely, and has undertaken extensive contingency planning and is working closely with HM Treasury, other domestic authorities and overseas central banks.
“The Bank of England will take all necessary steps to meet its responsibilities for monetary and financial stability,” the statement read.