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Bank of England forecasts lowest growth for a decade

The Bank of England has blamed the “fog of Brexit” for putting the brakes on the economy as it forecasts growth for 2019 to be the slowest in a decade.

The Bank revised down the 1.7 per cent growth forecast it made in November to 1.2 per cent, making this the slowest rate of expansion since the recession of 2009.

The BoE said its survey of firms and wider evidence had indicated that Brexit uncertainty had intensified among the business community, with investment activity tailing off towards the end of 2018.

The Bank’s report reads: “Uncertainty appears to have risen recently, and may have weighed on investment by more than had been expected in August…Growth appears to have slowed at the end of 2018 and is expected to remain subdued in the near term.”

Bank governor Mark Carney says: “The fog of Brexit is causing short term volatility in the economic data, and more fundamentally, it is creating a series of tensions in the economy, tensions for business.”

The Bank also predicts a one in four chance of a recession in the second half of 2019.

Yesterday, interest rates were held at 0.75 per cent, with commentators still uncertain as to whether inflationary pressures will soon force the bank to start ticking rates back up towards the 5 per cent levels seen pre-financial crisis.



Bank of England base rate held at 0.75%

The Bank of England’s monetary policy committee has voted unanimously to keep the base rate at 0.75 per cent. The rate has stayed at this level since it was raised from 0.50 per cent in early August last year. The meeting minutes show that the committee believes that the softer growth seen both domestically and […]


A third of UK firms consider Brexit relocation

Almost a third of UK firms have at least considered a move overseas in light of Brexit, according to a new survey by the Institute of Directors. The employers group says 18 per cent were either planning or actively considering moving activities overseas with 11 per cent – chiefly larger companies – having already done […]


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