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IPFS News Link • European Union

EU Referendum: Brexit would hit UK with economic 'earthquake', says Sir John Gieve

• http://www.ibtimes.co.uk, By Gaurav Sharma

Ratings agency S&P also said Ireland, Luxembourg, Malta and Cyprus are on the "frontline of economies susceptible to any trade and migratory aftershocks" in an outcome for UK to leave the EU.

Concurrently, a White Paper by consultancy Interim Partners noted that 80% of UK businesses have failed to make "adequate Brexit preparations."

Speaking to Bloomberg TV, Sir John said: "I think a Brexit would be a hell of a shock. As you see, the polls are evenly balanced. I still think that a lot of people, including our creditors, are assuming that it'll all come right. They're not ready for an earthquake."

The industry veteran, who officiated as the British central bank's deputy governor for financial stability from 2006 to 2009, said the Bank of England's first job in the event of a Brexit would be to calm markets.

"For the first few months, the key task of the Bank and the government would to establish some credibility with the international markets – that they have a plan and that they can be trusted to stick to it."


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