Brexit Impact Prompts BOE Plan to Increase Deposit Guarantee
- BOE plans to return deposit protection level to 85,000 pounds
- Pound has fallen over 11 percent against euro since referendum
Bunning: Pound Must Keep Falling to Address Uncertainty
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The Bank of England may boost the amount covered by the U.K.’s bank deposit guarantee after the vote to leave the European Union caused the pound to plunge.
The BOE’s Prudential Regulation Authority proposed to restore the limit to 85,000 pounds ($105,000) from 75,000 pounds, the level set in July 2015. EU law required non-euro member states to adjust their deposit guarantees at that time to the equivalent of 100,000 euros, the PRA said on Monday.