The International Monetary Fund has warned of repercussions whilst creating “significant uncertainity” not only for the UK and Europe but also the global economy following Britain's exit from the European Union.
IMF spokesperson Gerry Rice said the Brexit was likely to cause a dampening of growth in the near term, and urged policy makers to act decisively while dealing with the situation.
“Brexit has created significant uncertainty, and we believe this is likely to dampen growth in the near term, particularly in the UK, but with repercussions also for Europe and the global economy,” he said on Thursday.
The IMF spokeserson also said policy makers needed to be ready to act, if the impact of financial market turbulence and higher uncertainity threaten to weaken the global economy. He added that “ decisive policies will make a difference.”
“Prolonged periods of uncertainty and associated declines in consumer and business confidence would mean even lower growth and again, policymakers in the UK and the EU have a key role to play in helping to reduce the uncertainty during this period,” he said. Source: The Hitavada
Gerry Rice said the IMF “strongly supports” the commitments made and steps taken by major central banks, including the Bank of England, the European Central Bank, the US Fed and the Bank of Japan, among others, to provide liquidity and curtail excess financial volatility.
He added the IMF sees the near-term risk for the UK, the EU and the global economy arising mainly from macroeconomic and financial market impact, and a sizable increase in uncertainty, including on the political front.
