European markets have fallen dramatically this morning after the British vote to leave the European Union.

Sterling has fallen rapidly against the euro and dollar. Before the outcome, it was worth 76 pence sterling. It is now hovering below 81 pence.

Full business coverage including Bank of England reaction and World stocks in freefall.

The outcome has huge ramifications for Ireland economically.

Already stockbrokers have said they will reduce their forecasts for Irish economic growth.

That was reflected in a steep fall in the stock market this morning. Shares in Dublin fell 17% at one point this morning and are now down 10%. 

Bank of Ireland was dropped 22% and Ryanair 12%. In London, the FTSE is down 7%. In Paris, the stock market is down 10% and Frankfurt 8%.

These are the short term consequences, but the long-term ramifications will take many years to become clear. 

For the Government a path of long, hard political negotiations to limit the damage on Irish trade is ahead.

The British pound had hit a 2016 high above $1.50 after an earlier opinion poll showed an outcome in favour of 'Remain', but fell nearly 17 cents from that peak as area counts came in and TV stations said the Brexit camp had won the landmark referendum.

The British currency's fall of almost 10% was also historic, marking a decline greater than anything seen since free-floating system of exchange rates was introduced in the early 1970s.

It was even bigger than on 'Black Wednesday' in 1992, when billionaire financier George Soros was instrumental in pushing the pound out of the Exchange Rate Mechanism.

London bankers working through the night said they had not seen anything like the volatility sweeping across UK assets.

"It's back to the future, we're back to where we were in 1985," said Nick Parsons, co-head of global currency strategy at NAB.

"We've had a 10% decline in six hours. That's simply extraordinary, and a vote to leave provides an existential crisis for Europe," he said.

The Bank of England said it will take all necessary steps to meet its responsibilities for monetary and financial stability, adding that it has undertaken extensive contingency planning.

In a statement this morning, Governor Mark Carney said the UK economy will adjust to new trading relationships. "We will not hesitate to take any additional measures required," he added.

The collapse has also caused shockwaves around the global markets. World oil prices plunged more than 6% in the Asian markets.

Copper prices have also fallen, but gold, considered a safe haven for investors, is up 8%.