The U.K. Chancellor of the Exchequer George Osborne this morning broke his silence, saying that the Treasury and the Bank of England have come up with further contingency plans over the weekend.
"[We] have further well thought through contingency plans if needed," he said in a press conference before the markets open, adding that he has been in constant contact with the central bank and that "swap lines" were in place so institutions could get foreign currency if needed.
He said, "The fundamentals are strong, we have dealt with the immediate impact because of the contingency plan. Britain is open for business."
The volatility is likely to continue, he warned, and said he has been working with regulators and financial institutions to ensure they are prepared. Unlike during the financial crisis banks will "help" and not "hinder" the economy.
FTSE 100 was recently down 0.46% at 6,110.42. The pound was down 1.72% against the dollar at $1.3439.
Over the past 72 hours Osborne said he has been speaking with his fellow finance ministers in Europe, the International Monetary Fund, central banks and the U.S. Treasury Secretary to ensure financial stability. He has also been in contact with CEOs of major financial institutions, "so that collectively we keep a close eye on developments."
But he warned that there will be a delay in investment and hiring, this will have an impact on the economy.
Osborne also said that Article 50 - the clause of in the EU treaty that provides for a member state exit - should only be triggered when there is a clear plan of what an exit will look like.
Although he threatened an emergency budget during the campaign, today Osborne said there will be an adjustment in the economy, and an impact on public finances but said that a new budget should only be put in place when the new prime minister is in place. Prime Minister David Cameron on Friday said he would resign by the Conservative Party's conference in October, with former London mayor and pro-Brexit campaigner Boris Johnson seen as the frontrunner to succeed him.
Osborne said, "Given the delay in triggering Article 50 and the prime minister's decision to hand over to a successor, it is sensible that decisions on what that action should consist of should wait for the [Office for Budget Responsibility] to assess the economy in the autumn, and for the new Prime Minister to be in place."