They now think that there will be a perpetuation of the status quo – or something not far removed from it. But this was a worst-case scenario and the Bank had to throw in the kitchen sink to arrive at it. The idea, for example, that interest rates would rise by four percentage points after a no-deal Brexit is implausible. The softer the Brexit, the more convinced the EU will be that it has been doing the right thing all along. The risk is that the losers will be the biggest supporters of the EU – the liberal left.

Source: The Guardian January 17, 2019 06:00 UTC