IMF urges 'smooth transition' to a new relationship

Washington - IMF chief Christine Lagarde called on Britain and Europe on Friday to work together to ensure that Britain's pullout from the European Union will take place smoothly.

"We urge the authorities in the UK and Europe to work collaboratively to ensure a smooth transition to a new economic relationship between the UK and the EU, including by clarifying the procedures and broad objectives that will guide the process," Lagarde said.

In a statement after Britain's shock vote to leave the EU, the IMF managing director also strongly endorsed the commitments of the Bank of England and the European Central Bank to make sure the banking system has enough liquidity and to tamp down market volatility.

"We will continue to monitor developments closely and stand ready to support our members as needed," Lagarde said.