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Bank warns of no-deal recession

BANK of England governor Mark Carney warned a no-deal Brexit could trigger a recession as expected growth for this year was cut to 1.2 per cent — the lowest for a decade.

The Bank downgraded its forecast from the 1.7 per cent predicted in November, and also cut its outlook for 2020 to 1.5 per cent.

It came as the monetary policy committee voted to keep interest rates unchanged at 0.75 per cent.

Mr Carney (pictured) said the ‘shock’ of a no-deal would increase the risk of the economy going into recession ‘for a quarter or two’.

Brexit uncertainty had been ‘weighing more heavily’ on firms since November, he said.