LONDON (Diya TV) — British Prime Minister David Cameron announced he would resign his post on Friday morning, after his country voted to exit the European Union. Hepromised to stay in office until October and help “steady the ship” before a new leader is chosen.
“On questions about the arrangements for how we are governed, there are times when we should ask the people themselves,” the Mr. Cameron said outside his prime ministerial home. “The British people have asked to leave … their will must be respected.”
Prime Minister Cameron came into power in 2010, had referred to the Brexit referendum after promising the conservative party in 2013 that he would hold a such a vote of he won re-election last year. Thursday’s results weakened Cameron.
“Now the decision has been made to leave, we need to find the best way,” an emotional Cameron said. “I will do everything I can to help. I love this country and I feel honored to have served it. I will do anything I can in future to help this great country succeed.”
Cameron had spent months advocating for the UK to stay in the European union, and even warned a decision to leave would drastically harm the economy. Voters ultimately rejected his appeals, with about 52 percent favoring the separation.
“I held nothing back, I was absolutely clear in my belief,” he said. “The British people have made a very clear decision to take a different path.”
Cameron’s dire economic warnings appear to have been founded. After the BBC called the referendum, the British pound plummeted to a 31-year low, pushing down global stock prices.
The Bank of England said Friday it was on standby to take action after the UK’s decision to separate from the EU sent the pound plunging to a 31-year low in the market aftermath.
The Bank said it was “monitoring developments closely” and pledged to “take all necessary steps to meet its responsibilities for monetary and financial stability” in a statement released Friday morning.
Some experts and economists have predicted the result of the Brexit vote would send the UK back into a recession. There has also been speculation that the Bank could cut interest rates from 0.5 percent to zero in the coming months to cushion the economy from the anticipated blow.
The statement added the Bank has undertaken “extensive contingency planning” and is working closely with Treasury and other central banks after the effects of the vote rocked economic markets worldwide.
Sterling silver fell to its lowest level since 1985, an even steeper dive than that of Black Wednesday in 1992.
Shares in London are expected to endure a harsh session on the trading floor, futures trading is predicted to fall by at least 8 percent, or around 500 points, in the FTSE 100 Index. Such a dive would decrease the value of its companies by more than £130bn, and would equate to one of the index’s biggest falls in its 32-year history.
The pound was effected mildly after the polls closed Thursday, research has indicated the Remain side of the vote marginally ahead around 11 p.m. local time, the same time the pound climbed sharply up to a six-month high against the dollar at $1.50.
When regional results began to be counted, a much clearer picture was painted, resulting in the pound nosediving by more than 10 percent to $1.33.
The pound’s collapse will likely impact shop prices, as imported goods will cost more for British consumers. Companies in the UK will also soon find that materials they buy, in American dollars for example, will become drastically more expensive. However, the fall in the pound could make for cheaper British goods, likely an aid to the region’s export market.
Elsewhere around the world, Japan’s Nikkei index dropped by 7 percent, while in Hong Kong, the Hang Seng shed 5 percent. HSBC and Standard Chartered – listed in Hong Kong as well as London – fell 9 percent and 10 percent.
Amidst the market chaos, gold, traditionally a safe-haven, climbed to a two-year high — it spiked Friday morning in the UK to $1330 per ounce, from $1265 yesterday.