Brexit: Bank of England won't hesitate to take additional measures after Brexit

The Bank of England (BoE) will not hesitate to take additional measures to ensure markets are able to cope with the outcome of the European Union referendum vote.

Speaking on Friday (24 June) morning, BoE Governor Mark Carney warned that a period of instability and adjustment will be inevitable in the short-term, but moved to reassure Britons that there will be no initial change in the way people can travel and in the way goods can move and services can be sold.

"Some market and economic volatility can be expected as this process unfolds," he said.

"But we are well prepared for this. The Treasury and the Bank of England have engaged in extensive contingency planning and the chancellor and I have been in close contact, including through the night and this morning.

"The Bank will not hesitate to take additional measures as required as those markets adjust and the UK economy moves forward."

Britain is set to leave the EU after the Leave campaign won the referendum with 52% of votes, prompting Prime Minister David Cameron to hand in his resignation in a speech outside Downing Street shortly after 8.30am BST.

The vote sent shock waves through stock markets across the world, with the FTSE 100 losing almost 11% in the first hour of trading, while Japan's Nikkei 225 plunged 8% and the pound fell to a 31-year low.

Financial stocks were among the worst hit, but Carney offered reassurances that British banks were in a much safer position than before the financial crisis.

"The capital requirements of our largest banks are now 10 times higher than before the crisis," he said.

"The Bank of England has stress tested them against scenarios more severe than the country currently faces. As a result of these actions, UK banks have raised over £130bn ($180bn) of capital, and now have more than £600bn of high quality liquid assets."

Carney added Threadneedle Street's officials will continue to pursue the BoE's goal for monetary and financial stability.

"The Bank will continue to consult and cooperate with all relevant domestic and international authorities to ensure that the UK financial system can absorb any stresses and can concentrate on serving the real economy," he explained.

"That economy will adjust to new trading relationships that will be put in place over time."