UK chancellor outlines post-Brexit challenges

LONDON (AA) - In his first public statement since Britain decided to leave the EU, Chancellor George Osborne on Monday outlined the economic challenges facing the country.

In speech aimed at calming market fears, Osborne said it was “inevitable” that the market would adjust following last Thursday’s decision to leave and the U.K. would face it from a “position of strength”.

He said contingency plans had been put in place with the Bank of England and he had been in touch with other central banks and major economic groups such as the IMF.

“It will not be plain sailing in the days ahead. But let me be clear -- you should not underestimate our resolve,” he said.

“We were prepared for the unexpected and we are equipped for whatever happens. And we are determined that, unlike eight years ago, our financial system will help our country deal with any shocks and dampen them, not contribute to those shocks or make them worse.”

He said Article 50, which starts the process of Britain’s exit, should not be triggered until the future relationship with Europe is clear and a new prime minister replaces David Cameron by October.

The chancellor added that the U.K.’s relationship with Europe would remain the same in the short-term as negotiations are conducted.

As he spoke, the pound continued to fall as trading reopened following Friday’s crash. Trading in Asia saw the currency fall to $1.34.