ECB meeting today to discuss Brexit contingency measures - FT

The European Central Bank (ECB) governing council members called a meeting today to discuss contingency measures in an effort to prevent the Eurozone'€™s economy from being impacted by Brexit, FT reports via Livesquawk.

As Livesquawk notes, “The FT reports the ECB's top policymakers will meet Tuesday to discuss ways to prevent the Eurozone's economy from being impacted by Brexit. The FT says the ECB believes it has the tools to weather the immediate aftermath and policy-makers'€™ base-line scenario doesn't envisage a collapse in confidence.”

“However they are more concerned about the long-run implications of Brexit such as possible disintegration of the EU.”

“The article notes that the ECB could respond to a surge in government borrowing costs via its Outright Monetary Transactions program. At the same time, the FT says a lack of clarity about the future of the EU could depress confidence no matter the ECB actions.”

“Street Account notes reports of contingency plans being put in place in order to respond to the impact from Brexit. ECB officials confirmed last week it was in contact with central banks and will act to stabilize financial markets. Meanwhile the EU is said to be planning a series of meetings aimed at calming the market in the event of Brexit.”