{"id":21217,"date":"2016-06-24T05:30:23","date_gmt":"2016-06-24T10:30:23","guid":{"rendered":"http:\/\/olduvai.ca\/?p=21217"},"modified":"2016-06-24T05:30:23","modified_gmt":"2016-06-24T10:30:23","slug":"central-bankers-around-the-globle-scramble-to-defend-markets-boe-pledges-345bn-ecb-others-promise-liquidity","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=21217","title":{"rendered":"Central Bankers Around The Globle Scramble To Defend Markets: BOE Pledges $345BN; ECB, Others Promise Liquidity"},"content":{"rendered":"

Central Bankers Around The Globle Scramble To Defend Markets: BOE Pledges $345BN; ECB, Others Promise Liquidity<\/a><\/h3>\n
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There was a reason why we warned readers two days ago that “The World’s Central Bankers Are Gathering At The BIS’ Basel Tower Ahead Of The Brexit Result<\/a>“: simply enough, it was to facilitate an immediate response when a worst-cased Brexit vote hit. And that is precisely what has happened today in the aftermath of the historic British decision to exit the EU.<\/div>\n
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It started, as one would expect, with Mark Carney who said the Bank of England is ready to pump billions of pounds into the financial system as he stands at the front line of Britain\u2019s defense against a Brexit-provoked market crisis.\u00a0The BOE governor declared that the central bank can provide an extra 250 billion pounds ($345 billion) through its existing facilities. It also has further measures if needed to deal with what he described as a \u201cperiod of uncertainty and adjustment<\/strong>\u201d after Britons voted to end their 43-year membership of the world\u2019s largest single market.<\/p>\n

The pound plunged to a three-decade low, British and global stocks tumbled and European bond spreads widened as the Brexit vote unfolded on Friday. Investor bets on a July interest-rate cut rose and Standard & Poor\u2019s said the U.K. will lose its top credit rating.<\/p>\n

\u201cSome market and economic volatility can be expected as this process unfolds,\u201d\u00a0<\/strong>Carney said in a televised statement in London after the referendum result. His comments followed Prime Minister David Cameron\u2019s announcement that he will step down this year, which will inject political uncertainty into an already volatile period. His full announcement is below and his statement can be\u00a0found here<\/a>:<\/p>\n