The decision to leave the European Union will trigger a recession for the UK, Larry Fink, chairman and chief executive of BlackRock has warned.
Speaking on CNBC Fink said he expected GDP to fall by 2% which could leave it as low as -1%.
However he insited that it would be a “short-term” recession and that it would happen despite the Bank of England’s decision to keep interest rates at0.5%.
BlackRock, which manages nearly $5tn of assets, recently reported a 3% drop in second-quarter revenues to $2.8bn as a result of economic uncertainty.
The asset management firm is will known in the industry as it provides funding lines to a number of big name mortgage and specialist lenders.