The Treasury Committee has published the Bank of England’s analysis of the Withdrawal Agreement and Political Declaration. The lengthy document explains how the reduction in openness with reduce the UK economy’s productive capacity and generally its short-term rate of growth – and how a disorderly Brexit will exacerbate this. It also notes that the longer-term consequences will depend on the nature of future trading relationships, other government policies and the British people.
The document analyses the likely conditions under a number of scenarios, from a close economic partnership to a disruptive and disorderly scenario.
FCA’s statement comments that firms’ contingency planning could lead to market fragmentation and an increase in cross border risk. It also notes the risks to consumers, directly through loss of services or indirectly as a result of market disruption. Again, it says that the impact of a no-deal scenario depends on the extent of post-Brexit cooperation.