Persistent uncertainty over the UK’s future relationship with the EU is holding back business investment and household spending, Mark Carney warned on Thursday, as the Bank of England cut its growth forecasts and left interest rates unchanged.
The central bank governor said the unpredictable nature of Brexit was weighing on supply and demand, with some companies already delaying decisions about entering new markets.
The bank expects investment in the UK economy to be 20 percentage points lower in 2020 than it had forecast before last year’s referendum on EU membership.
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