The City could lose its status as Europe's financial hub, warns top ECB official

Josh Martin
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General Election - Economy
Brexit could hit City of London (Source: Getty)

Britain's decision of leaving the EU could lead to the City losing its status as Europe's financial hub, a senior European Central Bank (ECB) official has warned.

Villeroy de Galhau, who is the governor of France’s central bank, said the the Leave vote is "bad news for Britain" and will have "negative consequences" for the UK economy.

Galhau told radio station France Inter: “As long as Britain is in the single market the City can remain a big European financial centre. If tomorrow, Britain is not part of the internal market, the City cannot keep its European passport.

“What happened on Thursday is bad news, first of all for Britain. Of course there will be negative consequences for the European economy but there will be much more limited than the negative consequences all experts forecast for the UK economy.”

A total of $2 trillion was wiped off world markets following Thursday's 51.9 per cent vote in favour of Brexit.

While the pound hit record lows, the UK's credit rating was downgraded to negative by Moody's.

Brexit Britain: What you need to know