Mark Carney announced that, while Britain is not financially secure following the EU Referendum result, the Bank of England has “a clear plan, and it is working”.
Speaking at a press conference on Tuesday 5th July, the Governor of The Bank of England Mark Carney stated that the Bank was doing everything they could to ensure "we can all look ahead, not over our shoulders”. However, Mr Carney stressed that the Bank of England could not offset all of the financial impacts that the referendum has had, and that many of the risks identified in the run up to the referendum “have begun to crystallise”. The pound has sunk to its lowest value in 31 years for example, as the UK enters into a period of uncertainty.
Reassurance
Mr Carney was reassuring to borrowers, saying that “the system is going to be there for someone who wants to buy a house or a business person with a viable plan”. Lending limits for banks have been increased meaning that businesses and households have access to more funds. Exporters in the UK also stand to benefit from a weakened pound as goods and services become more affordable to those overseas. The point was also made that no changes will be made to financial regulation until the UK have completed their negotiations to leave the EU.
Mark Carney outlined the Bank of England’s recovery plans post-referendum. You can find a full summary of these plans here.
