Brexit: Good global cooperation can limit uncertainty, says Bank of International Settlements

As central bankers from across the world, including Reserve Bank of India (RBI) chief Raghuram Rajan, met today, the Bank for International Settlements (BIS) said there is likely to be a "period of uncertainty and adjustment" in the wake of Britain's decision to exit the European Union.

In a development that could have far-reaching implications for Europe as well as the global economy, Britain has voted to leave the 28-nation bloc EU, causing bloodbath in financial markets.

"There is likely to be a period of uncertainty and adjustment... With good co-operation at a global level, we are confident that uncertainty can be contained and adjustments proceed as smoothly as possible," BIS said in a statement.

Noting that the referendum outcome has resulted in high volatility in markets, BIS said extensive contingency plans by the private sector and central banks have been put in place to limit disturbances.

"Stronger capital and liquidity buffers in the private sector have also made financial systems more resilient," the statement said.

"Central banks have already communicated that they are closely monitoring the situation and stand ready to take the necessary actions to ensure orderly market functioning." Earlier in the day, Rajan asked central banks across the globe to desist from currency depreciation to create competitive advantage in the wake of Britain's exit from the EU.

"Authorities across the world will (have to) pay more attention to building popular and political support for keeping an open world," he said, adding that rallying public support would be a "silver lining" from the Brexit episode.

Meanwhile, BIS also said the UK is closely integrated in the global economy and hosts one of the world's most important financial centres.

Heads of central banks are meeting here at the headquarters of BIS, which is popularly known as the bank for central banks.