Luis de Guindos, European Central Bank vice-president, said UK policymakers were right to warn of a Brexit shock AlamyEuropean financial regulators have told banks to prepare for a UK recession in the event of a no-deal Brexit. The warning, which followed a scenario set out by the Bank of England on Wednesday in which the UK economy could shrink by 8 per cent, came as the European Central Bank released its latest financial stability review. Risks to the currency bloc’s banks had risen since May, it said, citing Italy’s political battle with Brussels, rising US interest rates, fears about debt sustainability and a Brexit shock. Banking sector resilience has improved since May but risks have risen even faster. Luis de Guindos, ECB vice-president, said UK policymakers were right to warn of a Brexit shock.

Source: The Times November 30, 2018 00:00 UTC