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Carney Plans for Worst as Britons Agonize Over European Destiny

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As the U.K. agonizes over its relationship with Europe, the Bank of England is readying for turmoil.

With just 10 days before a referendum that could see Britain withdraw from the European Union, central bankers are putting the defenses in place to shore up market confidence and the financial system if that happens. Tuesday will see the first test of its work, with the start of a series of extra market operations to boost liquidity around the vote.

The culmination of more than a year of planning may see Governor Mark Carney face down a plethora of challenges from the potentially historic event. With volatility already spiking and the result set to be announced on a normal trading day, the immediate consequences of a Brexit victory could include capital flight, a sterling slump and a drying up of bank funding.

Bloomberg

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.
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