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Mark Carney says the Bank of England is ready to take whatever action necessary to protect Britain

Bank of England Governor Mark Carney has warned that the crisis in Greece has moved very quickly, and could pose significant risks to the UK economy after bailout talks broke down. However despite this, Carney has stated that the central bank is ready take whatever action is required to protect Britain [1].

This week, Greece closed its banks and restricted cash withdrawals. On Sunday, the country is due to hold a snap referendum on the crisis.

Speaking at a briefing on the Bank of England’s latest Financial Stability Report, Mr Carney said:

“As the risks associated with Greece began to crystallise in recent days, the outlook has worsened,” however he stated that the UK was “relatively well insulated” from the direct consequences of events in Greece. UK banks had a small exposure to Greece relative to their capital base, and Greek banks’ UK footprint was “tiny”[2].

This Is Money has reported that the Governor said the bank has worked with the Treasury and authorities in Europe to put contingency plans in place to protect Britain from catastrophe in Greece.

“The UK authorities will continue to monitor developments closely and will take any actions required to safeguard financial stability in the United Kingdom,” Carney said, adding: ‘The situation’s fluid, defences could be tested [3].

[1] Hugo Duncan, “Greece deadlock risks UK financial stability, warns Mark Carney – but adds BoE is ready to take whatever action to protect Britain,” http://www.thisismoney.co.uk/
[2] BBC News, “Carney: UK stability outlook has ‘worsened’ in light of Greece”, www.bbc.co.uk/news
[3] Hugo Duncan, ibid