U.K. central bank warns of deep recession without Brexit deal

LONDON — Leaving the European Union without a divorce deal could plunge Britain into its deepest recession in nearly a century, with the economy shrinking 8 percent within months as unemployment and inflation soar, the Bank of England warned Wednesday.

The stark projection came the same day the government’s own economists said the country will be poorer after Brexit than if it had stayed in the EU, no matter what sort of trade deal it secures with the bloc.

Britain and the EU have agreed on a deal for the U.K.’s exit in March. But British lawmakers are threatening to derail it when Parliament votes next month.

Prime Minister Theresa May says that if her deal is rejected, Britain could be headed for an economically disruptive “no deal” Brexit in March.