Osborne says clear sign of economic shocks since Brexit vote

George Osborne speaks at The Times CEO summit in London, on June 28, 2016.
George Osborne speaks at The Times CEO summit in London, on June 28, 2016. PHOTO: REUTERS

LONDON (BLOOMBERG) - Chancellor of the Exchequer George Osborne said the United Kingdom economy is experiencing clear evidence of shock, in a rare intervention since Britain voted to leave the European Union.

"Clear signs of economic shock in aftermath of Leave vote," Mr Osborne tweeted on Friday. "Will require supreme national effort but we can come through this challenge."

Mr Osborne made his comments after Bank of England Governor Mark Carney warned on Thursday that the central bank may need to loosen monetary policy to cope with the Brexit fallout. The pound capped its worst quarterly performance against the dollar since 2008 and extended its decline in early London trading Friday to below US$1.33 (S$1.79). The 10-year government bond yield slid to a record-low 0.776 per cent.

The chancellor has been keeping a low profile since Prime Minister David Cameron resigned last week in the aftermath of the referendum, as his Conservative Party descended into infighting over who would succeed him. He gave a speech to reassure markets on Monday and later ruled himself out of the leadership contest, but has said little otherwise.

Mr Osborne said he would be addressing business leaders in Manchester Friday to reassure them. The "UK has one of world's most flexible economies and is open for business," he said.