Brexit’s unpredictable outcome poses risk to global stability, says IMF

Organisation also says financial stability is threatened by US corporate debt, China's credit bubble and weak EU banks

The International Monetary Fund has warned that Brexit's unpredictable outcome poses a risk to global financial stability at a time when it is already challenged by heavily-indebted US corporations, China's credit bubble and weak European banks.

Warning that banks were likely to be the sector of the City hardest hit by Britain's departure from the European Union, the IMF said the costs of doing business would rise and regulation would become more complex.

Related: IMF ratchets up UK economic growth forecast to 2%