This translation has been automatically generated and has not been verified for accuracy.The Bank of England cut its growth forecasts on Thursday in the face of increased Brexit worries and a slowing global economy, but gave no indication it was considering lowering interest rates like other central banks.
The BoE said this had led to “a marked depreciation of the sterling exchange rate” – which is near a three-year low against a basket of other major currencies – and that as of mid-July, business uncertainty about Brexit had become “more entrenched.” This leaves British economic growth roughly in line with that of the euro zone, which Britain used to regularly outperform before June 2016’s referendum decision to leave the EU.The forecasts also showed a relatively high 30 per cent chance of a negative year-on-year growth in the first three months of next year. A recession is typically defined in Europe as two consecutive quarters of negative quarter-on-quarter growth.