Bank of England has kept rates unchanged but still fears Brexit

Gulf widening between Bank and chancellor over UK's post-Brexit prospects. Only time will tell who is wrong

In the run-up to the EU referendum in 2016 the Bank of England and the Treasury were as one in their belief that Brexit would be bad for the economy. Mark Carney, the Bank's governor and George Osborne, the then chancellor, were seen by the leave camp as two principal architects of "project fear".

Now that Britain is finally on the point of departure a gulf has opened up between the two institutions. The current chancellor, Sajid Javid, thinks it is possible for the economy to return to annual growth rates of a little under 3%, similar to those seen in the decade leading up to the financial crisis. The Bank is unconvinced and remains as downbeat about the impact of Brexit as it was three and a half years ago.

Related: Bank of England leaves UK interest rates on hold and cuts growth forecasts - business live