The Bank of England (BoE) has drawn up contingency plans in the event of a Scottish vote for independence from the UK, the bank’s governor says.
Mark Carney told reporters on Thursday that officials were preparing to deal with the outcome of the next month’s referendum on Scottish independence, saying the bank will retain authority over Scotland’s “financial stability” until independence is enacted in 2016.
“Whatever happens in the vote, the Bank will be the continuing authority for financial stability for some period of time, certainly over the interim period, and we will look to discharge our responsibilities accordingly,” Carney said.
Scottish First Minister Alex Salmond welcomed the “resolute intervention and action” of the BoE governor, saying the announcement of contingency plans would help shore up markets.
“What the Bank of England governor has said is very helpful. It shows that he is seeking to ensure financial stability and that the Bank remains in charge for that transitional period,” Salmond said.
Salmond also criticized Westminster parties for their “adamant refusal” on having a formal currency union, saying it will cause financial instability.
The leader of the Scottish National Party (SNP) previously noted that Scotland cannot be prevented from keeping the pound in case of a yes vote in the upcoming referendum even if a formal sterling zone is rejected by the UK government.
Salmond warned that independent Scotland would not take a share of Britain’s £1.3 trillion national debt if London rejects a sterling currency union.
Scotland will have an independence day on March 24, 2016 if Scottish people vote to break away from the UK in a referendum, which is slated for September 18, 2014, after more than 300 years of political union with the UK.
MOS/HJL
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