A hard Brexit at the end of this year is still a possibility and may be as damaging economically as if Britain had left the European Union without a deal, Dutch central bank Governor Klaas Knot said.

"In economic terms there may be little difference between a no-deal Brexit that could have occurred on the 31st of January, and a hard Brexit that could still occur at the end of 2020," Knot, who also sits on the ECB's Governing Council, said.

"This would happen if the EU and the UK are unable to agree on a timely trade deal. And if there is no mutual consensus on extending the transitional period beyond 2020," Knot added.