Impact of a Brexit?

On January 26, Mark Carney, the governor of the Bank of England, warned that concerns about a UK exit from the EU could test “the kindness of strangers” the country relies on to fund its hefty current account deficit. “The global general environment has become much more febrile, much more volatile, and relying on the kindness of strangers is not optimal in that kind of environment,” cautioned Carney. “The possibility of a risk premium being attached to UK assets, because of certain developments, exists and that plays into the riskiness of the situation.”

 

 

The UK government has signaled its intent to hold a referendum on the country’s continued participation in the EU in June, by publishing the conduct regulations for the referendum in parliament.

Sources:
Guardian
Julia Kollewe
February 4, 2016

Guardian
Jill Treanor and Nicholas Watt
January 26, 2016