Britain will vote to remain in the European Union by a narrow margin tomorrow (23 June) but the outcome will nevertheless cause political instability in the UK and in the 28-country bloc, according to Citigroup analysts.
The Leave campaign has gained strong momentum over the past couple weeks but, with less than 24 hours to go until the historic vote, economists at the US investment bank said they still expected Britain to remain in the UK.
“A Close Remain (our base case) could still undermine UK/EU political stability.”
The investment bank also warned that, in the event of a Brexit, the repercussions on financial markets could be substantial.
“A vote to Leave would have major repercussions in global financial markets, the economy and politics, triggering substantial downward revisions of UK and European growth forecasts,” analysts added.