No-deal Brexit could tip UK into recession, warns Moody's

Credit ratings agency says failing to agree deal will lead to weaker pound, higher inflation and pay squeeze

British households would face a renewed squeeze on living standards from a no-deal Brexit that could tip the country into recession, according to a report.

Issuing a stark warning for Britain that crashing out of the EU without a deal next year would have widespread ramifications, the credit ratings agency Moody's said the risks to the British economy had "risen materially" in recent months.

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