IMF warns global economic stability at risk from no-deal Brexit

Annual report says continuing uncertainty could adversely affect market confidence

A no-deal Brexit would send shockwaves through the global financial system and is one of the main risks to economic stability, the International Monetary Fund has said.

Echoing concerns from the Bank of England, the Washington-based organisation said the potential for millions of financial contracts between City banks and their counterparts across rest of Europe to collapse in the event of the UK leaving the EU without a deal was a major worry.

Related: Bank of England warns EU over Brexit risk to financial stability