BoE: No-deal Brexit would be worse than Great Recession

A no-deal Brexit would be very bad for the United Kingdom. Indeed, the United Kingdom is heading for dire times economically if there is no Brexit deal in place before the exit-date, says the BBC and The Guardian. The Bank of England concludes this in a new report.

The Bank sets out different “scenarios”, where the bank assesses the consequences for the British economy. In the worst-case scenario the UK economy would contract by 8%.  The bank expects inflation to climb to 6.5% with unemployment hitting 7.5%. Interest rates would be going up to 4%. In addition, the Bank of England expects house prices to fall by 30%.

The Bank’s has made these scenarios public only shortly after a number of government departments concluded that the UK would be worse off irrespective of what scenario played out.