Bank of England portends pound-freefall if Brexit upheld

LONDON, June 16 (KUNA) — The Bank of England warned on Thursday that a vote by British voters to pull out of the EU would result in a freefall of the British pound.
The pullout is likely to unsettle money markets in the UK and potentially the rest of the world, said the Bank in a report it issued today, noting that such a drastic action by the voters would affect adversely the rate of inflation and economic growth in Britain.
It added that both consumers and businesspeople have decided to postpone economic decisions pending the results of the Brexit vote next week, thereby casting a dark shadow on real estate and auto purchases as well as on various investments.
It further said that the Bank has on hand contingency plans which can be activated in the event of a pullout from the EU, focusing — among other things — on supporting the nation’s banks and their overall financial soundness.
Meanwhile, the Bank kept the interest rate at 0.5 percent which it had adhered to since March of 2009.
Next Thursday, British voters will go the polls to vote in a referendum deciding the fate of their country as a member of the European Union. (end) mrn.ajs