UK's Osborne to make Brexit statement before markets open on Monday

Sun Jun 26, 2016 5:11pm EDT
 
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By William James

LONDON (Reuters) - British finance minister George Osborne will seek to reassure financial markets on Monday following the country's decision to leave the European Union last week, setting out the government's economic response to the vote in a statement at 0600 GMT.

Global stock markets lost about $2 trillion in value on Friday after Britain voted to leave the EU, while sterling suffered a record one-day plunge to a 31-year low and money poured into safe-haven gold and government bonds.

"The Chancellor (Osborne) will make a statement tomorrow morning ‎to provide reassurance about financial and economic stability in light of the referendum result," a Treasury spokesman said in a statement.

The statement would set out "the actions that he and the rest of the government will be taking to protect the national interest over the coming period," the spokesman said.

No further details of Osborne's statement were provided.

The vote has unleashed political, as well as financial turmoil, prompting Prime Minister David Cameron to say he will resign, 11 senior members of the opposition Labour Party to withdraw support for leader Jeremy Corbyn and raising the prospect of a fresh Scottish independence bid.

Osborne, a close political ally of Cameron and one-time frontrunner to succeed him, has not made a public statement since the result beyond a series of tweets on Friday to say central banks had taken steps to ensure adequate market liquidity.

In his absence, Britain's credit rating outlook has been downgraded by Moody's, economists have slashed their growth outlook for the British economy and banks have forecast an extended period of volatility for sterling.   Continued...

 
Britain's Chancellor of the Exchequer George Osborne delivers a speech about murdered MP Jo Cox before the Dinner to the Bankers and Merchants at The Mansion House in London, Britain, June 16, 2016. REUTERS/Neil Hall