Lagarde: Markets interpreted incorrectly Britain to withdraw the vote but did not ~
Lagarde: Markets interpreted incorrectly Britain to withdraw the vote but did not suffer panic
Monday , June 27, 2016 - 9:43
Source - Reuters
Director-General of the International Monetary Fund Christine Lagarde said that financial markets "reduced significantly estimate" as a result of Britain's vote to withdraw from the European Union but not imbued with panic on Friday.
She said Lagarde at a forum in Colorado on Sunday that the US central bank governors "have performed their mission" by ensuring the availability of a large liquidity as policy makers work to reassure traders in the markets that "the situation is under control. It was under control. "
She said Lagarde "There was a significant move, violent and noisy and immediate as the pound sterling dropped ten percent.
"But there was no panic and led central bankers of their mission that they are willing to do in case of necessity, a pumping a large amount of liquidity in the markets."
She said that liquidity problems did not occur in the markets on Friday, such as those that occurred in 2008 during the worst part of the financial crisis.
But Lagarde said that the market's reaction way will depend on the steps taken by policymakers in Britain and the European Union to deal with the separation step and reduce ambiguity.
"At this stage it controls policymakers in Britain and Europe with this level of uncertainty. The way in which they will show in the next few days will lead a real direction in which the risk will go. "
She said that should the politics and institutions of multilateral cooperation to address the consequences of the vote to withdraw makers pointed out that Britain is the only that can begin the formal separation proceedings.