Brexit deal latest – No deal will see ‘biggest crisis since WW2 & see financial meltdown for millions’

But Britain's banking system is "strong enough to continue to serve UK households and businesses even in the event of a disorderly Brexit", the Bank also said.

Immediately the forecasts were slapped as scaremongering, and MPs said that they were never accurate anyway.

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The small print in the extreme scenario showed:

• Unemployment would rise to 7.5 per cent
• Inflation would double to 6.5 per cent
• More people would leave the country than come in
• Sterling would fall 25 per cent and be worth less than the dollar

"The Bank of England is ready for Brexit, no matter what form it takes," Mr Carney stressed at a press conference this afternoon.
"We have contingency plans in place to support market functions if necessary."

Mr Carney said that Britain was not yet ready for No Deal, but dodged questions on whether he was scaremongering with his extreme warnings.

"Our job is not to hope for the best but to prepare for the worst,"; he said.

They classes a bad Brexit as to mean that Britain went back to trading on World Trade Organisation terms, that no new trade deals were sealed, and there was severe disruption at all of our borders.

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But immediately Brexiteer MP Jacob Rees Mogg hit back: 'This is Project Hysteria.

"Before the referendum we were threatened with the plague of frogs. Now they warn of the death of the first born.

"The Bank of England has gone from being discredited to being hysterical."

And a former external member of the Bank's monetary policy committee, Andrew Sentence, said of the news: "This analysis is highly speculative and extreme.

"It will add to the view that the Bank is getting unnecessarily involved in politics and that will further undermine perceptions of its independence and credibility."

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The Bank also took a look at Mrs May's deal, which she hopes to be able to get a free trade agreement with the EU.

If that were a close deal, near to what we have now, GDP could fall by one per cent, but if it involved any customs checks or barriers, the economic impact might be 3.75 per cent of GDP.

Inflation and jobs would also have smaller impacts.