Central Banks in Crisis Watch Mode

Jon Economy, Market Commentary, Politics

Our sources are saying that the central banks have come to an accord to cooperate in an effort to support financial stability in the wake of Britain’s vote to leave the European Union. This is akin to the Plaza accord of 1985. Central bankers urgently gathered at the Bank of International Settlements in Switzerland to discuss the implications of the BREXIT referendum. The central banks are endorsing a contingency of measures to be put in place by the Bank of England. While the central banks will carefully monitor market functioning and stability, they are clueless what to actually do other than try to prevent currencies from swinging wildly.

This post was published at Armstrong Economics on Jun 26, 2016.