IMF warns of repercussions in global economy as after effects of Brexit

Britain's decision to leave the European Union has created significant uncertainty in the global economy, the International Monetary Fund has warned.

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, said IMF spokesperson Gerry Rice.

According to Rice, "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."

The IMF said policy makers needed to stand ready to act if the impact of financial market turbulence and higher uncertainty threaten to materially weaken the global outlook.

It added that it 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.

The IMF has encouraged both the UK and the EU to work collaboratively toward a smooth and predictable transition.