"A sharp currency depreciation would act as a supply-side shock, driving a spike in inflation, a squeeze on income and a drag on consumption. Savings would fail to provide an ample buffer as consumers have already dissaved significantly since the EU referendum. In fact, the saving rate is running close to its record low levels. "Business investment may also slow further as a falling pound with potential for further depreciation could spook investors. Furthermore, the benefit of rising exports usually associated with a weaker currency has not yet been felt by UK businesses, which suggests we may see little boost to exports from a weak pound."