UK's Osborne: Don't underestimate impact of 'Grexit' on EU/UK economies

LONDON, June 29 (Reuters) - The impact of a possible Greek exit from the euro zone should not be underestimated, British finance minister George Osborne warned on Monday, saying Britain's government and central bank stood ready to ensure financial stability.

"I don't think anyone should underestimate the impact that a Greek exit from the euro would have on the European economy - and the knock-on effects on us," Osborne told parliament.

"The British government and the Bank of England stand ready to ensure our financial stability in the UK." (Reporting by William James; Editing by Andrew Osborn)