With a vote for Brexit, the UK has done an act of self-harm. Two big economies – the UK and the rest of the EU – that were linked and supported by a single market are suddenly weaker. The uncertainty is being being absorbed by equity, currency and credit markets.
Compared with before the financial crisis, central banks are far more proactive at dealing with market volatility than in the past. The Bank of England, Federal Reserve and European Central Bank all have large quantitative easing programmes in place, although the ECB is the only one currently buying.