The Bank of England (BoE) has held interest rates at 0.75% as Brexit uncertainty could keep borrowing costs lower.
Members of the nine-strong Monetary Policy Committee (MPC) voted unanimously to not change interest rates.
BoE said that Brexit uncertainty is becoming more entrenched which is hampering growth.
The Bank said, “Political events could lead to a further period of entrenched uncertainty about the nature of and the transition to the UK’s eventual future trading relationship with the EU.
“The longer those uncertainties persisted, particularly in an environment of weaker global growth, the more likely it was that demand growth would remain below potential, increasing excess supply.”
The Bank added, “The committee judged that underlying growth had slowed, but remained slightly positive.”