Britain biggest loser in disorderly Brexit: ECB’s Vice President

FRANKFURT REUTERS Nov 29 -The euro zone bank sector is prepared for a hard Brexit and the Bank of England is right to warn of a deep recession if Britain leaves the bloc without a deal, European Central Bank Vice President Luis de Guindos said on Thursday.   

 The BoE said on Wednesday that the British economy could shrink by as much as 8 percent in about a year in case of a no-deal Brexit, adding to pressure on lawmakers to drop their opposition to the Brexit agreement that Prime Minister Theresa May struck.   

 “Yesterday we had these reports from the UK Treasury and the Bank of England that I think made the correct point,” de Guindos told a news conference.   

 “The most important point made by yesterday’s report is that in case of a disorderly Brexit, the UK economy would enter into a period of very, very big recession, GDP would drop in the area of 8 percent,” he said.