IMF chief: Interest rates could ‘rise sharply’ after Brexit

The consequences of Britain quitting the European Union would range from “pretty bad to very, very bad”, the head of the International Monetary Fund has warned.

Brexit poses a “significant downside risk” and could see interest rates “rise sharply”, Christine Lagarde said as the global finance body published its regular report on UK economic prospects.

Withdrawal from the 28-member bloc would result in a “protracted period of heightened uncertainty” for the UK, with a likely hit to output and “sizeable” long-term losses in income, according to the assessment.