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Pound’s drop on Carney adds to slide that may soften Brexit blow

Brexit

Pound’s drop on Carney adds to slide that may soften Brexit blow

Bloomberg Published on Fri, Jul 01, 2016 / 7:34 AM GMT+8

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(July 1): The pound dropped after Bank of England Governor Mark Carney said the central bank may need to loosen monetary policy as it tries to contain the fallout from Britain’s decision to quit the European Union.

Sterling has tumbled more than 10% since polls closed on June 23. While that’s a sign of a lack of confidence in the UK’s post-vote economy, a weaker currency may help cushion the effect of Brexit. Central bank action, designed to further insulate the UK, may be necessary within months, Carney said Thursday in his second televised address since the country voted to leave the trading and political bloc.