The European Central Bank has rejected warnings from the Bank of England and stated that Brexit will not cause an economic shock in the eurozone.

It's vice-president Vitor Constâncio said that the UK's exit will, "really not harm significantly the ongoing recovery in the euro area."

"The point is that of course Brexit is very significant for the UK, but in view of the relative size it is much less meaningful for the rest of the EU," he added in a video statement.

Mark Carney, governor of the Bank of England has suggested that a harsh Brexit deal which cut ties with London would start a ripple effect which would cause disruption which would cause major disruption in economies across Europe.

The ECB has countered that Brexit, "is likely to have limited implications for the euro area economy and financial stability."

It added that it believes that companies providing financial service in London will establish new offices outside of the UK.The beneficiaries of relocations are likely to be existing EU financial centres that already have infrastructure in place that can be scaled up,”

"The beneficiaries of relocations are likely to be existing EU financial centres that already have infrastructure in place that can be scaled up," the Portuguese official added.