Hammond said the new United Kingdom government's challenge was to quickly reassure the global investment community, British businesses and consumers to make investments start to "flow into the UK economy again".
"Because the vote on the 23rd June to leave the European Union has also created political red lines for us in that negotiations and our neighbours have to respect that too".
New Prime Minister Theresa May has entered Downing street and has embarked upon one of the most radical cabinet reshuffles in recent memory.
Former Mayor of London and foreman of the Leave campaign, Boris Johnson have been made Foreign Secretary, despite believing that he would not be given a place on the front bench in a May-run administration. From their new vantage points of secretary for exit, foreign secretary, worldwide trade and agriculture, the prominent Leavers, unaccompanied by the sacked assassin Michael Gove, will now have to redeem their promise to the nation.
Philip Hammond says he will meet with the head of the Bank of England, Mark Carney, on Thursday to "assess where we are".
Hammond offered calming tones to the markets and the public in a series of interviews the morning after taking office.
It's possible May will keep George Osborne in the post, in a message to business and the markets that she's not going to shake up the levers of government at a time when Britain is craving certainty.
He explained that he agreed wholly with the implementation of austerity back in 2010 as a response to the earlier financial crisis, and lauded its successes saying that "we are in an immeasurably stronger position today than we were in 2010".
"We will do whatever we need to do to restore that confidence and to keep Britain as an attractive destination for businesses to invest and create jobs".
The bank's Monetary Policy Committee had been widely speculated to respond to Brexit fears by reducing rates beyond its historic low of 0.5%, where they have been since March 2009. It also decided against a new bout of quantitative easing, under which it effectively pumps money into the economy through the purchase of government bonds from financial institutions.
"There has been a chilling effect", he told the BBC.
Mr Hammond said that investment, job creation and business confidence had all been hit since the referendum result.
"My initial judgement is that the immediate impact on the economy has come from business pausing decisions that they otherwise would have taken, investment decisions".