No deal Brexit would mean the pound crashing Bank of England warns

The Bank of England has warned the pound would crash, inflation will soar and interest rates would have to rise in the event of a no deal disorderly Brexit. The Bank's worst case scenario predicts: The size of the economy could plunge by 8 per cent in less than a year - further and faster than the financial crisis of 2008 At the same time, the unemployment rate would rise 7.5 per cent, meaning hundreds of thousands losing their jobs Inflation would surge 6.5 per cent, sending prices in the shops surging House prices could plunge 30 per cent, while commercial property prices are set to fall 48 per cent The pound would fall by 25 per cent to less than parity against both the US dollar and the euro Mr Carney insisted: 'These are scenarios not forecasts – they illustrate what could happen not necessarily what is most likely to happen….they are informative about the relative economic impacts of various relationships. But to dismiss the possibility that it may be broadly right seems like an act of faith, not reason.’ The Bank of England set out a range of scenarios for what might happen to the size of the economy after Brexit today, predicting a catastrophic recessions if there is no deal and no transition A 'disorderly' Brexit suggests rapidly rising unemployment and inflation, according to tonight's Bank report But Labour's Wes Streeting said the Governor's warning emphasised the need for a People's Vote. He said: 'The Bank has confirmed what other independent reports this week have been telling us: a No Deal Brexit could be even worse than the financial crisis of ten years ago, and the country would be much worse under Theresa May's deal.' But she added: ‘What the economic analysis that the Government has sent out today shows is that the deal that I’ve negotiated is the best deal available for jobs and the economy that honours the referendum and also opens up opportunities for us post-Brexit.’ = The Canada-style relationship endorsed by many Brexiteers would result in a 6.7 per cent hit, while even a Norway model keeping similar free movement rules would entail a 1.4 per cent loss.