BoE cuts growth forecast amid 'intensifying' Brexit uncertainty

Held rates

Sterling dropped to a two-week low in early afternoon trading after the Bank of England said it had cut growth forecasts amid heightening Brexit uncertainty.

The BoE's Monetary Policy Committee (MPC) voted unanimously to maintain rates at 0.75% in its February meeting, with just 50 days to go until the UK leaves the European Union, amid slowing UK activity and a decelerating global economy. Although the minutes noted the need for higher rates in the future, the MPC cut UK growth forecasts to 1.2% this year, down from 1.7% predicted three months ago, the lowest since 2009 and the largest downgrade since the 2016 referendum, while 2020's growth forecast was slashed 0.2 percentage points to 1.5%. The minutes said: "Since the MPC's previous me...