The Bank of England’s forecast on growth outlook leaves London stocks in red with benchmark FTSE 100 index sliding 0.28 percent on Thursday.
In its quarterly inflation report, the Bank of England said “the outlook for global growth has weakened since August”. It blamed the weakness on emerging market economies, saying growth in those regions had slowed markedly.
The report forecasts that the British economy will experience 2.5% growth in 2016, down from the current 2.7%.
The bank said that based on recent falls in oil and other commodity prices, “inflation is likely to remain lower than previously expected until late 2017.”
The Bank, however, made no indication about increasing monetary stimulus and once again held UK interest rates at the record low of 0.5%. The Monetary Policy Committee, led by Governor Mark Carney, voted 8-1 to keep the rates unchanged.