2 May 2016
BoE busy preparing contingency plans for Brexit - FT
The Bank of England is busy preparing contingency plans if Britain were to leave the EU, the Financial Times report.
According to the FT: "In the days leading up to the June 23 poll, the Bank will hold additional auctions of sterling to ensure the banking system has sufficient funds to operate in a potentially chaotic moment."
FT adds: "Michael Saunders, the new member of the bank's Monetary Policy Committee, expects the pound to come under severe pressure. While still at Citi, he wrote that Brexit risks were "nowhere near priced yet", adding that Britain should expect a 15 to 20 per cent depreciation of sterling against Britain's main trading partners."
According to the FT: "In the days leading up to the June 23 poll, the Bank will hold additional auctions of sterling to ensure the banking system has sufficient funds to operate in a potentially chaotic moment."
FT adds: "Michael Saunders, the new member of the bank's Monetary Policy Committee, expects the pound to come under severe pressure. While still at Citi, he wrote that Brexit risks were "nowhere near priced yet", adding that Britain should expect a 15 to 20 per cent depreciation of sterling against Britain's main trading partners."