A Brexit without agreement would cause a 25% collapse of the pound, according to the Bank of England

A Brexit without a deal would cause a huge shock to the UK economy with a 25% collapse of the pound, the Bank of England (BoE) warned Wednesday in its assessment of the different exit scenarios for the EU.

The BoE adds that in the case of this darkest scenario, British gross domestic product (GDP) would be cut from 7.8% to 10.5% by 2024, compared to what it would have been without Brexit. Earlier in the day, a government report estimated the loss of GDP at 9.3% in 15 years.

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The central bank draws a particularly worrying picture in case of exit from the European Union without agreement, which would see the unemployment rate skyrocket to 7.5%, as the inflation to 6.5%, while prices real estate would plummet by 30%.

Even in the case of maintaining a close relationship with the EU, GDP would be reduced between 1.2% and 3.8% by 2024, says the BoE, which welcomed rather the negotiated Brexit agreement by the Prime Minister, Theresa May.

The institution, which has also released the results of the stress tests on the financial sector, has ensured that the big UK banks had the necessary capital levels to deal with "a severe economic shock that would be associated with a disorderly Brexit" , that is, without agreement.