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[...] The IMF said in a report on the UK economy that a leave vote could have a "negative and substantial effect". It has previously said that such an outcome could lead to "severe regional and global damage".
Ms Lagarde said the Fund had a duty to assess the risks of Brexit. It has a mandate to oversee the international monetary and financial system.
Brexit was not just a domestic issue but an international one as well, she told a briefing at the Treasury attended by the Chancellor, George Osborne. [...]
In its report, the IMF said that a Brexit vote would result in a "protracted period of heightened uncertainty" and could result in a sharp rise in interest rates.
That would cause volatility on financial markets and economic output to decline and could also erode London's status as a global financial centre, it added. [...]