The Bank of England is losing faith in Britain’s economic strength and slashed its outlook for the country on Thursday as it opted to leave interest rates on hold.
The BoE now expects Britain’s economy to grow by just 1.2% this year and 1.5% in 2020. Back in November, the central bank forecast the economy would grow by 1.7% each year.
Bank of England Governor Mark Carney said: “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.”
GMB, Britain’s general union, has commented on the Bank of England’s warnings of economic slowdown and a 1 in 4 risk of recession in 2019.
Neil Foster, GMB National Research and Policy Officer, said: “These serious warnings from the Bank of England chime with many of our experiences in workplaces.
“We are just 50 days away from when the UK is due to leave the EU and the uncertainty of employers is being passed onto many workers who in turn are nervous about spending in the real economy.
“The Prime Minister’s refusal to rule out crashing out of the EU with no deal next month is making matters worse and is causing havoc for many firms in manufacturing, transport and retail industries.
“No-one in 2016 voted for a recession and working people should not be made pick up the tab for the Tory Government’s Brexit mess.”
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