Britain’s central bank has cut it forecasts for the UK economy, saying it expects growth to remain “sluggish” over Brexit uncertainty.
The Bank of England on Thursday cut its annual growth estimate for 2017 to 1.7 percent from 1.9 percent previously, and for 2018 to 1.6 percent from 1.7 percent.
“Households looked through Brexit-related uncertainty initially, but more recently… they have cut back on spending, slowing the economy,” the banks Governor Mark Carney told a press conference Thursday.
The bank’s Monetary Policy Committee voted to keep its main interest rate at a record-low 0.25 percent following a regular policy meeting.
“GDP growth remains sluggish in the near term as the squeeze on households’ real incomes continues to weigh on consumption,” The bank said in a statement on Thursday.
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