After the Bank of England voted to hold rates and cut growth forecasts, the bank’s governor, Mark Carney, warned that Brexit would continue to cast a shadow on the UK’s prospects.
“It’s evident in our discussions across the country with businesses,” he said, “that uncertainties about the eventual relationship are weighing on the decisions of some businesses.”
Carney added that investment was much weaker than one might expect “in a very strong world” and the result is beginning to materialize. “The speed limit of the economy, if you will, has slowed.”
While investment may improve from current “very subdued” levels, those levels are historically low.
The pound fell to a low of less than 1.106 euros after the bank’s decision to hold rates at 0.25%, where they have stayed since August of last year.