LONDON: The Bank of England on Thursday slashed its estimates for UK economic growth this year and next, one day before the country exits the European Union.

It came as BoE policymakers, in governor Mark Carney’s final monetary policy committee (MPC) meeting, voted to keep its main interest rate at 0.75 per cent by a 7-2 majority.

“The question facing the MPC at this meeting was whether the new decade would start with a bang,” Carney told a press conference, adding that he had “no regrets” over his monetary policy record at the BoE since taking the reins in 2013.

Some analysts had expected the Canada-born central banker to have joined the ranks of those demanding a quarter-point rate cut to 0.50pc.

The minutes of the latest BoE meeting showed that two dovish policymakers had cited “downside risks” to the bank’s projections arising from “Brexit uncertainties and a weaker world outlook”.

While not agreeing to a rate cut to help prop up Britain’s economy, the central bank did predict troubles ahead.

The British economy would expand by only 0.8pc this year, the BoE said, down sharply on its previous 1.2pc forecast.

In 2021, gross domestic product was expected to grow 1.4pc, down on November’s estimate of 1.7pc.

Published in Dawn, January 31st, 2020