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Bank of England wouldn't fight post-Brexit forex moves - Carney
May 24, 2016 / 11:39 AM / a year ago

Bank of England wouldn't fight post-Brexit forex moves - Carney

LONDON (Reuters) - The Bank of England would not seek to counter moves in sterling’s exchange rate if Britain votes to leave the European Union in a referendum next month, Governor Mark Carney said on Tuesday.

“(You) would not expect the Bank to stand in the way of necessary adjustment in the exchange rate...” Carney told members of parliament.

“It would be inconsistent as well to use the exchange rate for competitive purposes or other reasons that would be inconsistent with our G7 commitments.”

The BoE has said it expects sterling to fall if the country votes to leave the EU on June 23.

Carney said the BoE would take all necessary steps to ensure markets function in an orderly way in the event of a vote to leave the EU. Such a response would be mainly through extra liquidity operations which it announced in March, he said.

Reporting by Andy Bruce; editing by William Schomberg

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