BoE's Broadbent: pound's fall a 'shock absorber' after EU vote - BBC radio
- Wall Street opens flat as investors assess earnings
- General Motors (GM) Tops Q3 EPS by 28c
- Procter & Gamble (PG) Tops Q1 EPS by 5c
- DuPont (DD) Tops Q3 EPS by 14c; Boosts FY16 EPS Outlook; Says Continuing to Work with Regulators
- Pre-Open Stock Movers 10/25: (SAEX) (CWEI) (SWFT) Higher; (DPRX) (CRBP) (UA) Lower (more...)
A pile of one pound coins is seen in a photo illustration shot June 17, 2008. REUTERS/Toby Melville/Illustration/File Photo
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
LONDON (Reuters) - Bank of England Deputy Governor Ben Broadbent said the pound's fall after Britain voted to leave the European Union has acted as an important shock absorber for the economy, in a radio interview broadcast on Monday.
Sterling fell to its lowest level on record against a basket of currencies last week as investors became increasingly worried that Britain will lose its preferential trading terms with the EU - a so-called "hard Brexit".
"Having a flexible currency is an extremely important thing, especially in an environment when your economy faces shocks that are different from your trading partners," Broadbent told BBC Radio 5.
"In the shape of the referendum, we've had exactly one of those shocks. Allowing the currency to react to that I think is a very important shock absorber."
(Reporting by Andy Bruce; Editing by Kim Coghill)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Diversity a source of strength in open, inclusive cities: Canada
- Greek, Turkish Cypriots to discuss territory trade offs in November
- ECB calls for light touch on high frequency trading
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!