The Bank of England cut growth forecasts on Thursday and the lone advocate of a rate hike reversed his position, suggesting rates were on hold for an extended period even as its governor said the next move was still likely to be up.
Echoing downbeat comments from central banks around the globe, BoE chief Mark Carney warned that global growth was only modest at best with risks rising as emerging economies struggle, holding back Britain despite its domestic resilience.
Highlighting risks from China's economic rebalancing, more capital flows, tighter financial conditions, and increased market volatility, Carney said risks to Britain were rising.
"All of these developments pose downside risks to growth in the United Kingdom via trade, financial and confidence channels," Carney told a news conference.
"The outlook for trade is particularly challenging with net exports expected to drag on UK growth over the forecast period."
