Currency markets

Meeting: 
MQT on 2016-03-16
Session date: 
March 16, 2016
Reference: 
2016/0954
Question By: 
Stephen Knight
Organisation: 
Liberal Democrats
Asked Of: 
The Mayor

Question

Considering the drop observed in the value of the pound upon you announcing your intention to campaign for the UK to leave the EU, what assessment has been made of the short-term impact the campaigning of both sides could have on the value of the pound and by extension the London economy?

Answer

Answer for Currency markets

Answer for Currency markets

Answered By: 
The Mayor

I consider the recent fall in sterling to be a market correction. However, as with elections, the build up to the referendum on whether the UK should remain in or leave the European Union will be a lively and engaging democratic process. Such campaigns will inevitably bring a degree of uncertainly - this is part of being in a democracy which encourages forthright and open debate. Longer term, I believe the UK and London are in a strong position to take advantage of international opportunities for trade and collaboration.