Government, RBI monitoring Brexit fallout, taking 'calibrated' steps

NEW DELHI: Government and RBI are closely monitoring emerging external situation following the UK's decision to exit the EU to take calibrated and appropriate policies as and when required, Parliament was informed today.

"The government and RBI are closely monitoring the emerging external situation due to exit of Britain from the European Union to take calibrated appropriate policies as and when required," Finance Minister Arun Jaitley said in a written reply to the Rajya Sabha.

Jaitley further said Brexit is a long-drawn process and may take more than two years.

"Even with Brexit, EU rules will continue to apply to the UK units until the Article 50 negotiations are complete. So, the UK would not be able to change its immigration policies or adopt its own trade polices till then," the minister said.

Accordingly to Article 50 of the EU treaty, the negotiations can last up to two years and may be extended if 27 remaining states agree, he added.

Last month, in a historic development, the UK voted to leave the European Union (EU).