Growing anxiety over the UK\u2019s EU referendum has driven sterling down to a new seven year low. The pound fell as low as $1.3879, as cabinet ministers clashed over the legal strength of Britain\u2019s new deal with Europe.<\/p>\n
Investors are also scrambling to protect themselves against fresh volatility ahead of the June referendum. The cost of insuring against sterling volatility has hit its highest level since 2011.<\/p>\n
IMF chief Christine Lagarde has warned that Britain, and Europe, would bother suffer if the UK quits the EU. She fears that the uncertainty will hurt growth, at a time when the world economy is already fragile.<\/p>\n
The Fund also cited June\u2019s referendum as a potential threat to the UK\u2019s recovery.<\/p>\n
Several other City bosses have warned against Brexit. Ryanair, the budget airline, has even pledged to campaign actively to keep Britain inside the EU.<\/p>\n
HSBC has predicted that the pound would slump by 20% in the event of a Brexit vote. It also warned that growth would fall sharply, with the housing market and the banking sector also vulnerable.<\/p>\n
A poll of City economists has also predicted that the pound will tumble further if the Out campaign wins.<\/p>\n
Growing anxiety over the UK\u2019s EU referendum has driven sterling down to a new seven year low. The pound fell as low as $1.3879, as cabinet ministers clashed over the legal strength of Britain\u2019s new deal with Europe. Investors are … Continue reading ![\"Lagarde\"](\"http:\/\/www.w-t-w.org\/en\/wp-content\/uploads\/2016\/01\/Lagarde.jpg\")
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