Barclays has written to investors, detailing that its ‘economist team’ believes that Prime Minister Boris Johnson and the Conservative government have downplayed the economic risks of a No Deal Brexit.
The FTSE bank is reported to have made economic research available to investment partners analysing its ‘central scenario of a No Deal Brexit’, which it believes is ‘increasingly inevitable’ as an outcome.
Barclays research concludes and advises that UK enterprise should prepare for a recession, further declines £ sterling against all major currencies combined with rising inflation.
Anticipating significant increases in all-round business costs, Barclays predicts that £ Sterling will likely reach its lowest ever trading price against the US dollar, forecasting a decline to $1.09 (current index $1.22).
Barclays’ report will not be published to the media or general public, with the bank stating that it has made its analysis of UK business impacts, ahead of the Bank of England publishing its Brexit report next month, which will detail the BoE’s mechanisms should a No Deal Brexit scenario be triggered.
Despite posting Barclays’ ‘best trading quarter in over a decade’ this August, Group Chief Executive Jes Staley stated that he felt deep anxiety over an ‘uncertain landscape’ threatening all business stakeholders.
Last month, the Treasury reported revealed that the economy had contracted in the last quarter, pointing towards a UK recession should declines continue.
