IMF sees ‘negligible’ Brexit impact on US growth

The IMF said in its formal annual review of the US economy and policies that the Brexit vote has prompted a rise in the dollar that has been less than feared, up about 1 per cent in nominal effective terms.

Brexit, British consumer morale, Consumer moral low after Brexit, British consumer moral low, Brexit consiquesnces, Brexit aftermath, Brexit effect on Bristish Economy, Brexit effect on consumer mood, Cosumer moral low in Britain, Birtain news, Latest news, International news, World News

Bank of England Governor Mark Carney has said the British economy faces a material slowdown after the referendum result, and the he may decide to cut interest rates to a new low next week.(Source: File Photo)

Britain’s referendum on leaving the European Union has caused uncertainty and increased risks to the US economy, but thus far it looks likely to have a pretty “negligible” impact on US growth, the International Monetary Fund said on July 12.

The IMF said in its formal annual review of the US economy and policies that the Brexit vote has prompted a rise in the dollar that has been less than feared, up about 1 per cent in nominal effective terms, while stock markets have recovered losses incurred in the immediate aftermath of the vote. Meanwhile, the safe-haven rush into US Treasuries has lowered yields, and home and business financing costs, considerably.

“The net effect on growth is pretty negligible,” Nigel Chalk, the IMF’s mission chief for the United States, told reporters on a conference call.