WASHINGTON Oct 7 The impact of Britain's
decision to leave the European Union on the country's economy is
so far following a modest scenario envisaged by the
International Monetary Fund, the IMF's head of the European
Department Poul Thomsen said on Friday.
"While sterling obviously has declined sharply, there have
been no major negative market reactions, in part because of a
very strong and appropriate policy reaction by central banks, by
the Bank of England and the announcement by the ministry of
finance to stand ready with an appropriate fiscal policy stance
if needed," Thomsen told a news briefing.
"As for GDP we had two scenarios before Brexit -- a modest
impact and a strong impact. We are largely in the modest impact
scenario, we have revised slightly upwards our UK growth
forecasts," he said.
"The main issues are, in the longer term, how is this is
going to be handled. It is absolutely critical that the
uncertainty in this regard is settled sooner rather than later,"
(Reporting By Jan Strupczewski)