Bank of England warn of a disastrous no-deal Brexit, worse than the virus – UK car industry expect a huge slump also

An ICYMI heads up to comments from Bank of England Governor Bailey:

  • failing to secure a new trade deal with the European Union would do more damage to the UK economy over the long run than the coronavirus pandemic
  • “I think the long-term effects … would be larger than the long-term effects of Covid,”
  • “It takes a much longer period of time for what I call the real side of the economy to adjust to the change in openness and to the change in profile in trade”
Bailey was speaking in testimony before parliament’s Treasury committee.

Meanwhile the UK motor industry is warning of production losses of £55bn over the next five years if no Brexit deal is agreed. That is the number from the Society of Motor Manufacturers and Traders. SMMT is urging the government to get a deal that avoids resorting to tariffs under World Trade Organization rules.

Meanwhile the clock is ticking, the UK will leave the EU transition period on January 1 . Just over 37 days away.