Brexiteers slam Bank of England’s ‘No Deal’ hysteria claims of house prices to crash by 30 per cent and pound ‘worth less than dollar’
Governor Mark Carney entered Brexit war with an 'apocalyptic vision' of how bad a 'disorderly' Brexit would be
HOUSE prices will crash by 30 per cent as Britain plunges into recession in a No Deal Brexit, the Bank of England warned.
The economy will shrink, the value of the pound crash below that of the US dollar and inflation soar, it predicts.
Governor Mark Carney entered the Brexit war with an apocalyptic vision of how bad a “disorderly” Brexit would be.
In the biggest shock since WWII, he said the economy would shrink by 8 per cent – sparking a bigger downturn that the credit crisis.
The Pound would crash by 25 per cent to below parity with the US dollar, inflation soar to 6.5 per cent and interest rates hit 5.5 per cent.
Unemployment will rise by more than 1million, the Bank fears.
Governor Mark Carney, said the apocalyptic vision was a worst case scenario.
But Brexiteers dismissed it as hysteria.
Tory MP Jacob Rees-Mogg said: “Before the referendum we were threatened with the plague of frogs.
“Now they warn of the death of the first born.”
The Bank’s grim forecast was based on Britain losing all trade agreements and severe disruption at our borders.
It suggests the economy will take an eight per cent hit, driving inflation to 6.5 per cent, while interest rates climb to 5.5 per cent and the pound loses a quarter of its value.
But Mr Carney said the possibility of a No Deal was increasing.
He added: “Our job is not to hope for the best but to prepare for the worst.”
It came as Chancellor Philip Hammond warned all possible outcomes were worse than remaining in the EU.
A cross-Government analysis showed a No Deal exit would wipe 10.7 per cent off the economy within 15 years.
But it suggested a Brexit agreement based on Theresa May’s hoped-for deal could keep the hit to 0.6 per cent.
Meanwhile, in other departments:
- Chancellor Philip Hammond was sizing up a softer Brexit if, as expected, Mrs May’s deal is voted down in the Commons in 12 days
- Shadow Chancellor John McDonnell claimed a second referendum was now all-but inevitable
- Former MI6 chief Sir Richard Dearlove warned that Mrs May’s Brexit deal “threatens Western security”
- Environment Secretary Michael Gove said he lost sleep worrying about the impact of a No Deal Brexit
- Senior Brexiteer Andrea Leadsom gave the Prime Minister’s deal her backing, saying it “delivered” on the result of the EU referendum
Separately the number of Tory backbenchers vowing to vote against the PM’s deal on December 11 hit an incredible 99 – as Robert Syms MP said he’d reject it.
Speaking earlier in the Commons, Theresa May insisted Britain would be “better off” under her Brexit deal – and that it was better than either a Canada-style free-trade agreement, joining the European Economic Area or a No Deal.
She told MPs: “Our deal is the best deal available for jobs and our economy, and one that allows us to honour the referendum and realise the opportunities of Brexit.”
THE SUN SAYS: NOTHING TO FEAR
So it’s plague, pestilence and recession when we leave the EU. Haven’t we been here before?
Just before the Referendum, the Treasury said a Leave vote would send us “into a year-long recession”. The Bank of England said a Brexit vote would increase unemployment. Oops!
And yet, despite being so wrong then, both organisations are dusting off the old Armageddon scenarios in a naked attempt to get the PM’s deal through Parliament.
We don’t dispute that a clean break from Brussels could be chaotic. But the idea that one of the world’s largest economies is suddenly going to become a basket case is for the birds.
Attempts to scare the public with forecasts as reliable as a Northern Rail train patronise voters. There was more to the historic 2016 vote than the economy.
Like sovereignty.
Control of our borders, so Britain’s historic openness can be balanced with delivering public services.
Security, which senior figures warn is under threat even under Theresa May’s in-out, hokey-cokey deal.
We firmly believe that this country will continue to prosper without onerous EU red tape and have the ability to trade freely with the world.
If the Government prepares us properly for a clean break, there is nothing to be scared of.
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