Govt, RBI monitoring Brexit fallout: Jaitley

NEW DELHI: The government and the Reserve Bank of India are closely monitoring emerging external situation following the United Kingdom’s (UK’s) decision to exit

NEW DELHI: The government and the Reserve Bank of India are closely monitoring emerging external situation following the United Kingdom’s (UK’s) decision to exit the European Union (EU) to take calibrated and appropriate policies as and when required, the Parliament was informed on Tuesday.

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“The government and the RBI are closely monitoring the emerging external situation due to exit of Britain from the European Union to take calibrated appropriate policies as and when required ,” finance minister A run Jaitley said in a written reply to the Rajya Sabha. He further said Brexit is a long-drawn process and may take more than two years.

“Even with Brexit, EU rules will continue to apply to the UK units until the Article 50 negotiations are complete. So, the UK would not be able to change its immigration policies or adopt its own trade polices till then,” the minister said.

Accordingly to Article 50 of the EU treaty, the negotiations can last up to two years and may be extended if 27 remaining states agree, he added.

On June 23, in a historic referendum, UK voted to leave the EU prompting the resignation of then Prime Minister David Cameron.