Moody's: Lost economic output in a no-deal Brexit scenario could be significant and persistent

Assessing the potential Brexit scenarios, the US-based rating agency Moody’s Investor Services said that the lost economic output in the event of a no-deal Brexit could be "significant and persistent." Below are some additional takeaways, as reported by Reuters.

"UK economic activity remained lacklustre at best in recent months, alongside weakening in housing market, consumption & financial conditions."

"If no Brexit deal is reached between UK and EU, UK economy could suffer significant & persistent loss in output."

"No-deal Brexit would have credit negative implications for number of debt issuers."

"Risk of a credit negative no-deal Brexit has increased in recent months."

"Further delay to UK's withdrawal from EU prolongs uncertainty and does not resolve the final outcome."

The GBP/USD ignored Moody's report and continues to trade in the upper half of its daily range near 1.2370.