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Brexit: RBI to take steps to maintain market stability

RBI_6

Amid uncertainty in global financial markets over the ‘Brexit’ developments, the RBI said it is keeping a close vigil on the situation and will take all adequate measures, including liquidity support, to ensure orderly conditions in the markets.

“In the run up to the referendum in the United Kingdom on its continuing in the European Union (Brexit), uncertainty about the poll outcome has resulted in some amount of turbulence in global financial markets, including in India,” the Reserve Bank said in a statement.

“The RBI is maintaining a close vigil on developments, and will take all necessary steps, including liquidity support, to ensure orderly conditions in financial markets,” it said.

On June 23, the UK will vote on whether to remain in the 28-nation European Union or to leave. Britain’s exit from the EU, or Brexit, is being debated globally as it could have implications for the international financial markets and exchange rates.

India has significant trade with the UK as well as the EU. It also receives large investments from the Europe.

On Tuesday, Federal Reserve Chair Janet Yellen said Britain’s exit from the European Union would have a significant economic repercussions.

“One development that could shift investors sentiment is the upcoming referendum in the United Kingdom. A UK vote to exit the European Union could have significant economic repercussions,” the US Federal Reserve Board Chairwoman Janet L Yellen had said.
PTI

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