Bank of England has warned that Britain Faces its weakest economic growth in a decade

Bank of England has warned that Britain Faces its weakest economic growth in a decade

The Bank of England announced that Britain faced its weakest economic growth in 10 years in 2019, the bank cited mounting Brexit uncertainty and the global slowdown.

But the bank stuck to its message that interest rates will rise, if a Brexit deal is done.

While other central banks say they will hold off from raising borrowing costs, the Bank of England restated that gradual and limited rate rises lie ahead for the world’s fifth-largest economy.

This is provided a no-deal Brexit in just 50 days’ time is averted.

Britain is due to leave the European Union on March 29, but Prime Minister Theresa May is holding out for more concessions from the bloc in an attempt to get her divided Conservative Party behind her plan.

The Bank of England has previously said a worst-case Brexit scenario, with no deal for a transition period and a sudden loss of confidence in Britain among foreign investors, could hammer the economy more than the global financial crisis did.

The bank today sharply lowered its 2019 economic growth forecast to 1.2% from its previous estimate of 1.7%, made as recently as November.

That represented the biggest cut in its projections since the period immediately after the 2016 Brexit referendum and put Britain on course for its weakest economic growth in the 10 years since the global financial crisis.