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Central banks to cooperate closely to deal with Brexit fallout

GEM comprises governors of 30 BIS member central banks in major advanced and emerging market economies.

Published: 26th June 2016 12:18 AM  |   Last Updated: 26th June 2016 12:18 AM   |  A+A-

Rajan_Reuters

Reserve Bank of India (RBI) Governor Raghuram Rajan. (Reuters)

By PTI

BASEL: Central bankers from across the world, including RBI Governor Raghuram Rajan, today discussed implications of Britain's decision to leave the European Union on financial markets and agreed to work closely to ensure stability.

Global markets were roiled by Brexit on Friday, sending stocks and currencies into a tizzy.

"Central banks will carefully monitor market functioning and stability, and cooperate closely," Global Economy Meeting (GEM) Chairman Agustin Carstens said after the meet of central bankers.

GEM took place on the occasion of BIS (Bank for International Settlements) annual general meeting here.

Rajan, who is also Vice-Chairman of BIS, also participated in the meet.

"Central bank governors at today's GEM discussed the implications of the EU referendum in the United Kingdom.

"Governors endorsed the contingency measures put in place by the Bank of England and emphasised the preparedness of central banks to support the proper functioning of financial markets," Carstens said in a statement.

GEM comprises governors of 30 BIS member central banks in major advanced and emerging market economies, including from India.

Besides, governors from several other central banks attend GEM as observer members.

On Friday, BIS said there is likely to be a "period of uncertainty and adjustment" in the wake of Brexit.

Noting that the referendum outcome has resulted in high volatility in markets, BIS had said extensive contingency plans by the private sector and central banks have been put in place to limit disturbances.

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