Market turmoil likely to force Carney to abandon ECB meeting
LONDON—Bank of England governor Mark Carney is expected to abandon plans to fly to Portugal for a summit of central bankers, amid fears of further turmoil when markets open on Monday.
With expectations that the FTSE 100 index could open almost 3% lower on Monday, the governor was weighing up whether to stick to his plans to attend the European Central Bank’s annual summit in Portugal on Wednesday.
Carney, who was quick to make a public statement on Friday after the Brexit vote sent shock waves through financial markets, seems unlikely to carry on with his schedule to attend the last day of the threeday meeting in Portugal which starts on Monday.
At one point on Friday morning as the result became clear, sterling dived to 30-year lows and the FTSE 100 was off almost 8%. Although by the end of the week the stock market ended where it had started. Even so, an analyst at Dow Jones indices had calculated that the $2tn (£1.4tn) wiped off global markets on Friday was the worse on record, surpassing the losses on 29 September 2008 during the height of the banking crisis. Carney was in Basel, Switzerland, for a meeting of central bank governors over the weekend, where he was expected to have discussed the implications of the historic vote on 23 June.—Agencies