ECB happy to stay put after Brexit vote as markets regain pose: Sources

The European Central Bank (ECB) is in no rush to ease its monetary policy in response Britain’s vote to leave the European Union (EU), taking comfort in a calmer-than-feared market reaction.

The European Central Bank (ECB) is in no rush to ease its monetary policy in response Britain’s vote to leave the European Union (EU), taking comfort in a calmer-than-feared market reaction, several sources have told Reuters.

The Euro logo in front of the former headquarters of the European Central Bank (ECB) in Frankfurt am Main, western Germany. (AFP File Photo)

The Brexit vote has hit the shares of euro zone banks and is likely to act as a drag on the euro zone economy, as ECB President Mario Draghi told EU leaders on Tuesday. It is also raising fundamental questions about the future of the EU.

But conversations with around a dozen officials familiar with the ECB’s thinking showed that the bank found some reassurance in the market rebound this week and was happy to take a wait-and-see stance, given the lack of hard evidence about the actual impact of Brexit.