ECB ready to "act if necessary" in case of Brexit

12 June 2016, 19:37
Sherif Hasan

So says Bank of France governor and ECB governing council member Villeroy speaking to Welt am Sonntag 12 June 2016

  • primarily the BOE would have to respond to possible Brexit "but if necessary the ECB is ready to act"
  • Brexit would have consequences for London as financial centre

Joint intervention can not be ruled out, and there is market talk of a plan being out in place as I reported previously here. The fact remains that both the UK and Eurozone will have currency wobbles if we do vote to Leave.

On ECB QE he says:

  • defends corp bond buying
  • rejects criticism that ECB allegedly weighs in on European industrial policy with the purchases
  • Germany is the only country that believes ECB policy shaped by fact that Draghi is Italian, says allegations "unfair"
  • other central banks inc US Fed successfully pursued similar policy as ECB
  • ECB might need to explain policy better

Central banks giving clear communication? Now that really is too much to ask.

Enjoy the rest of your week-end one and all.


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