Bank of England warns no-deal could see UK sink into recession - BBC News

A no deal Brexit could send the pound plunging and trigger a worse recession than the financial crisis, the Bank of England has warned.

It said the UK economy could shrink by 8% in the immediate aftermath if there was no transition period, while house prices could fall by almost a third.

The Bank of England also warned the pound could fall by a quarter.

The Bank's analysis comes after the Treasury said the UK would be worse off under any form of Brexit.

This Bank's scenario is not what it expects to happen, but represents a worst-case scenario, based on a so called "disorderly Brexit".

The scenario looks at the five-year period after the UK leaves the EU.

But by the end of 2023, the economy is expected to resume growing.

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"These are scenarios not forecasts. They illustrate what could happen not necessarily what is most likely to happen.

"Taken together the scenarios highlight that the impact of Brexit will depend on the direction, magnitude and speed of the effect of reduced openness of the UK economy," Bank of England governor Mark Carney said.