Britain would face falling into a devastating recession, the pound would plunge and prices would soar in the event of a no deal Brexit a ratings agency has warned.
Moody's have said the chance of crashing out with out an agreement had “risen materially” in recent months.
The chief author of Moody’s report, Colin Ellis, said that a no deal Brexit would “clearly pose more significant challenges than a negotiated exit”, said.
In a stark report, Moody's said: "The immediate impact of a no-deal Brexit would likely be seen first in a sharp fall in the value of the British pound, as was also evident after the 2016 UK-wide referendum on whether to remain in or leave the EU.
"The fall in the exchange rate would lead to temporarily higher inflation and hence a further squeeze on real wages over the following two to three years, which in turn would weigh on consumer spending and depress growth.
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