IMF: Yes vote in Scotland would spook money markets

The International Monetary Fund has warned that a vote in favour of independence will spook the financial markets.

Success for the Yes campaign would be likely to create “uncertainty” in the short term as politicians thrashed out “complicated” issues, particularly over what currency Scotland would use.

Longer-term, the impact on the economy would be determined by the detailed results of the negotiations carried out in the wake of the vote, the organisation added.

Meanwhile, Scotland’s first minister, Alex Salmond, has said there would be an “inevitable investigation” over allegations that the UK Treasury leaked “market-sensitive” information about Royal Bank of Scotland’s proposal to register itself in England if Scotland votes for independence.

The SNP leader said the alleged BBC briefing by a “Treasury source” was “a matter of extraordinary gravity”, and urged the BBC to co-operate with the probe that must follow.

RBS, which has been based in Scotland since 1727, said it would be necessary to redomicile the bank’s holding company and its main operating entity to England if Scotland votes Yes.

It said the decision to re-domicile should have no impact on everyday banking services and it would retain a significant level of its operations and employment in Scotland.

Lloyds Banking Group issued similar advice this morning, while Standard Life has also advised investors it is “planning for new regulated companies in England”.

A Lloyds spokesman said the group, which also includes Scottish Widows, had been contacted by concerned customers, staff and stakeholders about its plans in the event of a Yes vote.

The spokesman said: “This is a legal procedure and there would be no immediate changes or issues which could affect our business or our customers.