Central banks ready to intervene in case of Brexit – ECB'' s Visco

Ignazio Visco participates in the session ‘Recharging Europe’ in the Swiss mountain resort of Davos January 23, 2015.

Reuters/Ruben Sprich

Reserve banks are ready to intervene if Britain votes to leave the European Union (EU) at a referendum next week, ECB Governing Council member Ignazio Visco was priced quote as stating on Saturday. The possibility of the closely-contested vote, which will assist figure out Britain’s future in trade and world affairs and also form the EU, has rattled markets all over the world. “A British vote in favor of leaving the European Union is the danger that concerns us the most at the minute,” Ignazio Visco said in an interview with papers consisting of Italian everyday La Repubblica. “We are keeping an eye on this threat day by day and all central banks, not just the European Reserve bank, prepare to intervene with the traditional instruments they have: rate of interest, repos, swaps,” stated Visco, who is also Bank of Italy governor.

Authorities told Reuters recently the ECB would pledge to backstop markets in tandem with the Bank of England if Britons vote to leave.

Visco said the long negotiation process after an eventual “Brexit” vote would definitely have monetary repercussions however it was difficult to anticipate how major they would be. Advocating the referendum has been suspended after a British lawmaker was killed in her electoral district in northern England on Thursday.

( Reporting by Isla Binnie; Editing by Andrew Heavens).

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