Central Banks in 'Wait-And-See' Mode With Guns Locked & Loaded After Brexit
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"The ECB stands ready to provide additional liquidity, if needed, in euro and foreign currencies," the ECB noted.
Furthermore, the central bank announced that it had been ready for a possible Brexit scenario, and that there would not be any space for speculation about a financial system collapse in Europe.
"The euro area banking system is resilient in terms of capital and liquidity. The ECB will continue to fulfill its responsibilities to ensure price stability and financial stability in the euro area," the ECB said in its press release.
Risk-off dominated markets across Europe after the Brexit referendum, with some central banks intervening on the field. One of the first central banks was the SNB after the results of the Brexit referendum pushed the franc too high."Following the United Kingdom's vote to leave the European Union, the Swiss franc came under upward pressure," the central bank said in a statement.
The BoE said in a statement that "some market and economic volatility can be expected" due to the results of the Brexit referendum, but the BoE is well prepared for the situation.
"The BoE will not hesitate to take additional measures as required as those markets adjust and the UK economy moves forward," the central bank said in the press release.
British PM David Cameron resigned on Friday after the Brexit referendum result.
Cameron's speech came after official data showed that Britain has voted to divorce from the EU, with 52% voting to leave the common bloc and 48% casting their vote to remain.
The Cabinet will meet on Monday to discuss the further steps and draw up a timetable for Cameron's stepping down.
To contact the author of this story, email filip.leskaroski@wbponline.com
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