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IMF: Brexit hit to UK could be 'pretty bad to very, very bad'

Britain leaving the EU could have a "negative and substantial effect" on the UK's economic growth, the International Monetary Fund has said.

"A vote for exit would precipitate a protracted period of heightened uncertainty, leading to financial market volatility and a hit to output," the IMF said in a report published on Friday.

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PM: Lagarde 'the latest top economist' in Brexit warning

David Cameron is campaigning for Britain to remain in the EU. Credit: PA

The prime minister has said the International Monetary Fund's Christine Lagarde "is the latest top economist" to issue a warning over the dangers of Britain leaving the European Union.

David Cameron said: "The IMF's Christine Lagarde is the latest top economist to warn leaving the EU could result in a recession - that would hit jobs and wages."

Speaking at the Treasury, the head of the IMF warned that a so-called 'Brexit' could be "pretty bad, to very, very bad" for the UK.

She also cautioned that leaving the EU would result in a "protracted period of heightened uncertainty" for the country and could see interest rates "rise sharply".

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