Bank of England Protects Pound Amidst Brexit Fears
The United Kingdom is about to face a big decision on whether they should stay or leave the European Union on June 23, and the ambiguity that is building around the situation has proven to be a challenge for the Bank of England.
Mark Carney the President of the bank made his comments warning that the UK economy could endure "materially lower growth, notably higher inflation and rises in unemployment" if Britain heads for the exit door, according to Sky News.
If they decide to leave the pound will fall sharply in value. Due to the amount of uncertainty this might cause, Bloomberg reports the Bank of England has, “decided to calculate an effective sterling exchange rate that removes the weakness in the currency,” and calling it the ‘ExBrex’ rate.
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