Bank of England says no-deal Brexit would be worse than 2008 crisis

GDP would fall by as much as 8% next year, exceeding the depth of the recession that followed the financial crisis in one of the worst-ever peacetime capitulations for the economy.

House prices would fall by 30% and the unemployment rate would increase from its current level of 4.1% to about 7.5%, while interest rates would be forced to rise as inflation increased to 6.5%.

In sharp contrast, the Bank said May’s Brexit deal had the potential to encourage a bounce for economic growth over the next five years, relative to its current forecast, although only if Britain maintains the closest possible trading ties with the EU.