Christine Lagarde, head of the International Monetary Fund
by Szu Ping Chan
Britain risks a massive drop in house prices and tumbling stock markets in a “self-reinforcing” cycle of weaker economic growth if the country votes to leave the EU, the International Monetary Fund has warned.
The IMF said next month’s referendum posed the “largest risk” to the UK economy as it warned that a vote to leave would “precipitate a protracted period of heightened uncertainty”.
An “abrupt reaction to an exit vote” could entail “sharp drops in equity and house prices, increased borrowing costs for households and businesses” that would hit growth, the IMF said.