Sterling fell to a low not seen since 1985, far below its value during the 2008 financial crisis. It lost parity against the dollar and the euro, butMark Carney, Governor of the Bank of England and Chairman of the G20’s Financial Stability Board, said not to worry.
The bank announced it “has undertaken extensive contingency planning.”
Carney said volatility should be expected and the Bank of England has “extensive planning” in place. Central bankers will “not hesitate to take additional measures” and pump 250 billion pounds into the markets. The central bank said It ”has undertaken extensive contingency planning.”
Donald Tusk, president of the European Council, urged calm. “I want to reassure everyone that we are prepared also for this negative scenario,” he said.
Mario Draghi, president of the European Central Bank, had previously said the bank would do whatever it takes to boost growth in the Eurozone.
Central bankers gathered in secrecy at the Bank for International Settlements’ tower of Basel in Switzerland ahead of the Brexit vote.