Bank of England (BOE) lowered the UK's economic growth expectations on Thursday. The reason for the reduction is, among other things, the uncertainty surrounding the British exit from the European Union, the Brexit. However, the bank left the main interest rate unchanged.
BOE expects an economic growth of 1.3 percent in 2019. In May the central bank assumed a growth of 1.5 percent. For next year, the British central bank is also aiming for economic growth of 1.3 percent. Previously this was 1.6 percent.
For the current quarter, the central bank expects economic stagnation, in May the central bank still expected 0.2 percent growth. BOE expects a growth of 0.3 percent for the third quarter. The expected economic growth in the second and third quarter would together be the weakest growth since 2009.
The British central bank considers the risk of economic contraction in the first full quarter after the Brexit deadline, the first quarter of 2020, one in three.