The pound sterling would collapse and inflation would rise without Brexit without agreement, says Bank of England – Politics on line | Policy

In the case of disruptive Brexit, where border trade and financial markets will not be altered, GDP could fall by 3% from its level of the first quarter of 2019.

In this scenario, the unemployment rate will reach 5.75% and inflation will rise to 4.25%.

Housing prices are down 14% and commercial property prices down 27%. The pound would fall by 15% against the US dollar to £ 1.10.

However, the big UK banks have "levels of capital and liquidity allowing them to withstand even a serious economic shock that could be badociated with a disorderly Brexit," the bank concluded from tests of financial strength of banks.

The UK banking system is "powerful enough to continue serving UK households and businesses even in the event of a messy Brexit," the bank said.