Bank of England governor Mark Carney has warned about the mounting risk of recession in the event of a no-deal Brexit, as Britain’s growth forecast was slashed to its weakest for 10 years. The Bank cut this year’s growth forecast to 1.2% – the lowest since 2009, when the economy was in a recession following the financial crisis. Its shock downgrade compares with 1.7% predicted in November, while the Bank also cut its outlook for 2020 to 1.5%. Even in the event of a smooth transition, the Bank’s latest quarterly inflation forecast signalled a one-in-four chance of recession. Mr Carney said: “When the economy is growing more slowly, the probability of it having a negative quarter or two goes up.

Source: Irish Examiner February 07, 2019 16:30 UTC