DHAKA: The Bank of England has warned that uncertainty about the EU referendum is the ‘largest immediate risk’ facing global financial markets.

The Bank said there were ‘risks of adverse spill-overs to the global economy’ from the 23 June vote.

It was ‘increasingly likely’ that sterling would fall further in the event of a vote to leave the EU, perhaps sharply, the Bank added, reports the BBC.

Sterling fell 0.5% to $1.4132, but was steady against the euro.

The Bank warned in the minutes of May’s Monetary Policy Committee meeting that a ‘vote to leave the EU could materially alter the outlook for (economic) output and inflation’.

MPC members said there was growing evidence that UK businesses and consumers were putting off ‘major economic decisions’ ahead of the referendum, with real estate and car purchases delayed, along with business investments.

The Bank said it had contingency measures in place to deal with any fall-out from the referendum result, including the offer of more support to banks and partnerships with other central banks to maintain financial stability.

The warning came as the MPC held interest rates at the historic low of 0.5% for another month.

BDST: 1802 HRS, JUN 16, 2016
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