The pound fell against the dollar and euro on Thursday after the Bank of England said that Boris Johnson’s Brexit deal would hamper UK economic growth.
Two BoE policymakers also voted unexpectedly to cut interest rates to support the stalling economy which has been battered by tumbling investment, poor productivity growth and lacklustre exports.
Sterling slid 0.3 per cent against the dollar after the BoE forecast that growth would be 1 per cent by the end of 2022, compared with what had been predicted in August before the prime minister secured his deal.
Growth forecasts were downgraded to 1.2 per cent in 2020 from 1.3 per cent, and to 1.8 per cent in 2021 from 2.3 per cent.
A quarter of the reduction resulted from Mr Johnson’s proposed Brexit deal with the rest due to a weaker global economy and “moves in asset prices”, the BoE said.
1/51 6 November 2019
British Prime Minister Boris Johnson makes a statement to announce the general election at Downing Street in London, Britain
REUTERS
2/51 5 November 2019
Liberal Democrat leader Jo Swinson speaking at the launch of their general election campaign at the Institute of Civil Engineers in London
PA
3/51 4 November 2019
Pelicans in St James’s Park in central London
AFP via Getty
4/51 3 November 2019
Dancers perform a mass Ghoomar dance during Diwali celebrations in Trafalgar Square, London
Reuters
5/51 2 November 2019
Campaigners listen as SNP leader Nicola Sturgeon addresses a rally calling for Scottish independence in Glasgow
AFP via Getty
6/51 1 November 2019
Police and recovery workers remove a damaged bus from the scene of a crash in Sevenoaks Road, south-east London. A man has been arrested on suspicion of causing death by dangerous driving after a person died and 15 others were injured
PA
7/51 31 October 2019
Labour Party leader Jeremy Corbyn gestures as launches the party’s election campaign in south London. Britain will go to the polls on December 12
AFP via Getty
8/51 30 October 2019
SNP leader Nicola Sturgeon joins Alyn Smith, the SNP’s candidate for Stirling, at the Made in Stirling Store and Creative Hub, during the general election campaign trail
PA
9/51 29 October 2019
A 1264 locomotive travels through an autumn scene along the North York Moors National Park
PA
10/51 28 October 2019
Paul Hayes of Lower Lydbrook ferries children to dry land after the River Wye burst its banks flooding the Gloucestershire village
PA
11/51 27 October 2019
Cosplayers during the third day of London’s Comic Con
PA
12/51 26 October 2019
England fans celebrate after their side beat New Zealand in the Rugby World Cup semi-final match in Japan. Eddie Jones’s side won 19-7
PA
13/51 25 October 2019
Meerkats at Blair Drummond Safari Park, Stirling, investigate a carved pumpkin as the park celebrates national pumpkin day on Saturday October 26.
PA
14/51 24 October 2019
A giant inflatable monster, created by artists Filthy Luker and Pedro Estrellas, is unveiled in Manchester ahead of the city’s annual halloween celebrations
PA
15/51 23 October 2019
Thirty-nine bodies have been found in a lorry container in Essex, police have said.
The discovery of 38 adults and one teenager was made at an industrial estate in Thurrock.
Police said they believed the lorry had come from Bulgaria and entered the UK at Holyhead, in Wales, on Saturday.
Essex Police said it had launched a murder investigation after its officers were called to Waterglade Industrial Park, in Grays, in the early hours of Wednesday morning.
A 25-year-old-man from Northern Ireland has been arrested on suspicion of murder
PA
16/51 22 October 2019
Ships out at sea before the sun rises off the coast of Whitley Bay, Northumberland
PA
17/51 21 October 2019
Hundreds of students take part in the traditional Raisin Monday foam fight on St Salvator’s Lower College Lawn at the University of St Andrews in Fife. The messy display is the culmination of a weekend of festivities where first years say thank you to their more senior student “parents” for mentoring them
PA
18/51 20 October 2019
Wales players celebrate after beating France in their Rugby World Cup quarter-final in Japan. Warren Gatland’s side had to battle after France’s fast start but capitalised on their rivals’ ill discipline to squeeze into the semi-finals, 20-19
Reuters
19/51 19 October 2019
People gather in London to join the Final Say march for a people’s vote
Angela Christofilou/The Independent
20/51 18 October 2019
Protesters on Whitehall in London during an Extinction Rebellion climate change protest
PA
21/51 17 October 2019
European Commission President Jean-Claude Juncker and Britain’s Prime Minister Boris Johnson shake hands during a news conference after agreeing on a Brexit deal, in Brussels
Reuters
22/51 16 October 2019
A man walks his dog through the fallen leaves in Clarkes Gardens, Allerton in Liverpool
PA
23/51 15 October 2019
Police officers carry away an activist as Extinction Rebellion protesters block a road with a caravan in central London
Reuters
24/51 14 October 2019
Queen Elizabeth II sits with Prince Charles on the Sovereign’s throne ahead of delivering the Queen’s Speech at the State Opening of Parliament
AFP
25/51 13 October 2019
Great Britain’s Joe Fraser competes on Parallel Bars during the World Gymnastics Championships in Stuttgart, Germany. He claimed GB’s second gold with his victory. The 20-year-old from Birmingham nailed his routine to score 15.0 then watched as a series of rivals failed to live up to his total
Getty
26/51 12 October 2019
St Helens players celebrate with the trophy after they won the Super League Grand Final at Old Trafford in Manchester. They beat Salford Red Devils 23-6
PA
27/51 11 October 2019
Richard Ratcliffe, husband of British-Iranian aid worker Nazanin Zaghari-Ratcliffe jailed in Tehran since 2016, holds his daughter Gabriella during a news conference in London. Their five-year-old daughter has arrived back in Britain, after making the “bittersweet” decision to bring her home
AFP/Getty
28/51 10 October 2019
Irish Prime Minister Leo Varadkar and British Prime Minister Boris Johnson at Thornton Manor. Their meeting focused on further Brexit proposals
EPA/Noel Mullen
29/51 9 October 2019
Wales survived an almighty scare against Fiji to secure quarter-final spot at the rugby world cup. Warren Gatland’s side recovered from a 10-0 deficit thanks to a hat-trick from Josh Adams
AFP/Getty
30/51 8 October 2019
Protesters dubbed the Red Rebels at Millbank at the junction with Great College Street, during an Extinction Rebellion protest in Westminster
PA
31/51 7 October 2019
Final preparations are made in front of a reproduction of Michelangelo’s ‘The Last Judgement’, ahead of the opening of for the ‘Michelangelo: A Different View’ exhibition at Hull Minister
PA
32/51 6 October 2019
A car drives through a flooded street in Whitley Bay in Northumberland
PA
33/51 5 October 2019
Thousands took to the streets of Edinburgh today to march in support of a second Scottish independence referendum
EPA
34/51 4 October 2019
A 12ft sculpture of a gorilla, entitled ‘Gorilla Apocalypse’, created by Luke Kite entirely from scrap car bumpers and panels discarded in the last decade is on display at the British Ironwork Centre in Oswestry, Shropshire
PA
35/51 3 October 2019
Police stands in front of the Treasury building during an Extinction Rebellion protest in London
Reuters
36/51 2 October 2019
Ex-Thomas Cook employees demonstrate in London after delivering a petition calling for a full inquiry into Thomas Cook’s collapse and for the company’s directors to pay back their bonuses
AFP/Getty
37/51 1 October 2019
A road in Alum Rock, Birmingham is flooded after persistent heavy rain
PA
38/51 30 September 2019
Two tourists pose for pictures in front of Union and EU flags outside the Houses of Parliament in London
PA
39/51 29 September 2019
A sheep on London Bridge as Freemen of the City of London took up their historic entitlement to drive sheep over the bridge, which was once London’s only river crossing
PA
40/51 28 September 2019
An Aldabra giant tortoise is fed watermelon as a treat at the Malvern Autumn Show, at the Three Counties Showground near Malvern in Worcestershire
PA
41/51 27 September 2019
Gallery assistants pose with an artwork entitled ‘Devolved Parliament’ by British artist Banksy, during a press view in London ahead of Sotheby’s contemporary art sale, as part of the Frieze Art Fair
AFP/Getty
42/51 26 September 2019
England’s Jonathan Joseph is tackled by United State’s Marcel Brache during their group match at the Rugby World Cup in Japan. England scored seven tries on their way to winning 45-7
Reuters
43/51 25 September 2019
Tributes for former Rangers player Fernando Ricksen at Ibrox Stadium. Today, the funeral procession will pass Ibrox Stadium before making the journey to Wellington Church
PA
44/51 24 September 2019
A person dressed as a caricature of Prime Minister Boris Johnson in a prison uniform stands outside the Supreme Court after it ruled that his decision to suspend Parliament was illegal
AFP/Getty
45/51 23 September 2019
Thomas Cook aircraft are parked up at Manchester Airport on the day they collapsed after rescue talks failed. A total of 22,000 jobs – including 9,000 in UK – are to be lost following administration. More than 150,000 British holidaymakers need to be brought home, with the government and CAA hiring dozens of charter planes to fly customers home free of charge
Getty
46/51 22 September 2019
Fire performer Penella Bee performs before people take part in the North East Skinny Dip at Druridge Bay in Nothumberland, an annual event that marks the Autumn Equinox and raises money for MIND – the Mental Health Charity
PA
47/51 21 September 2019
Protesters gather for a march and rally organised by “The People’s Vote” in Brighton, to call for politicians to give the public a final say referendum on Brexit
AFP/Getty
48/51 20 September 2019
Protesters in London joined millions across world to demand urgent action to save planet in the largest environmental protest in history
Angela Christofilou/The Independent
49/51 19 September 2019
Rapper Dave poses with the Mercury Prize: Albums of the Year Award at Apollo
Getty
50/51 18 September 2019
A surfer in action during sunrise at Tynemouth on the north east coast
PA
51/51 17 September 2019
Protesters dressed as the Incredible Hulk and Robocop outside the Supreme Court in London where judges are due to consider legal challenges to Prime Minister Boris Johnson’s decision to suspend Parliament. The Supreme Court will hear appeals over three days from two separate challenges to the prorogation of Parliament brought in England and Scotland
PA
1/51 6 November 2019
British Prime Minister Boris Johnson makes a statement to announce the general election at Downing Street in London, Britain
REUTERS
2/51 5 November 2019
Liberal Democrat leader Jo Swinson speaking at the launch of their general election campaign at the Institute of Civil Engineers in London
PA
3/51 4 November 2019
Pelicans in St James’s Park in central London
AFP via Getty
4/51 3 November 2019
Dancers perform a mass Ghoomar dance during Diwali celebrations in Trafalgar Square, London
Reuters
5/51 2 November 2019
Campaigners listen as SNP leader Nicola Sturgeon addresses a rally calling for Scottish independence in Glasgow
AFP via Getty
6/51 1 November 2019
Police and recovery workers remove a damaged bus from the scene of a crash in Sevenoaks Road, south-east London. A man has been arrested on suspicion of causing death by dangerous driving after a person died and 15 others were injured
PA
7/51 31 October 2019
Labour Party leader Jeremy Corbyn gestures as launches the party’s election campaign in south London. Britain will go to the polls on December 12
AFP via Getty
8/51 30 October 2019
SNP leader Nicola Sturgeon joins Alyn Smith, the SNP’s candidate for Stirling, at the Made in Stirling Store and Creative Hub, during the general election campaign trail
PA
9/51 29 October 2019
A 1264 locomotive travels through an autumn scene along the North York Moors National Park
PA
10/51 28 October 2019
Paul Hayes of Lower Lydbrook ferries children to dry land after the River Wye burst its banks flooding the Gloucestershire village
PA
11/51 27 October 2019
Cosplayers during the third day of London’s Comic Con
PA
12/51 26 October 2019
England fans celebrate after their side beat New Zealand in the Rugby World Cup semi-final match in Japan. Eddie Jones’s side won 19-7
PA
13/51 25 October 2019
Meerkats at Blair Drummond Safari Park, Stirling, investigate a carved pumpkin as the park celebrates national pumpkin day on Saturday October 26.
PA
14/51 24 October 2019
A giant inflatable monster, created by artists Filthy Luker and Pedro Estrellas, is unveiled in Manchester ahead of the city’s annual halloween celebrations
PA
15/51 23 October 2019
Thirty-nine bodies have been found in a lorry container in Essex, police have said.
The discovery of 38 adults and one teenager was made at an industrial estate in Thurrock.
Police said they believed the lorry had come from Bulgaria and entered the UK at Holyhead, in Wales, on Saturday.
Essex Police said it had launched a murder investigation after its officers were called to Waterglade Industrial Park, in Grays, in the early hours of Wednesday morning.
A 25-year-old-man from Northern Ireland has been arrested on suspicion of murder
PA
16/51 22 October 2019
Ships out at sea before the sun rises off the coast of Whitley Bay, Northumberland
PA
17/51 21 October 2019
Hundreds of students take part in the traditional Raisin Monday foam fight on St Salvator’s Lower College Lawn at the University of St Andrews in Fife. The messy display is the culmination of a weekend of festivities where first years say thank you to their more senior student “parents” for mentoring them
PA
18/51 20 October 2019
Wales players celebrate after beating France in their Rugby World Cup quarter-final in Japan. Warren Gatland’s side had to battle after France’s fast start but capitalised on their rivals’ ill discipline to squeeze into the semi-finals, 20-19
Reuters
19/51 19 October 2019
People gather in London to join the Final Say march for a people’s vote
Angela Christofilou/The Independent
20/51 18 October 2019
Protesters on Whitehall in London during an Extinction Rebellion climate change protest
PA
21/51 17 October 2019
European Commission President Jean-Claude Juncker and Britain’s Prime Minister Boris Johnson shake hands during a news conference after agreeing on a Brexit deal, in Brussels
Reuters
22/51 16 October 2019
A man walks his dog through the fallen leaves in Clarkes Gardens, Allerton in Liverpool
PA
23/51 15 October 2019
Police officers carry away an activist as Extinction Rebellion protesters block a road with a caravan in central London
Reuters
24/51 14 October 2019
Queen Elizabeth II sits with Prince Charles on the Sovereign’s throne ahead of delivering the Queen’s Speech at the State Opening of Parliament
AFP
25/51 13 October 2019
Great Britain’s Joe Fraser competes on Parallel Bars during the World Gymnastics Championships in Stuttgart, Germany. He claimed GB’s second gold with his victory. The 20-year-old from Birmingham nailed his routine to score 15.0 then watched as a series of rivals failed to live up to his total
Getty
26/51 12 October 2019
St Helens players celebrate with the trophy after they won the Super League Grand Final at Old Trafford in Manchester. They beat Salford Red Devils 23-6
PA
27/51 11 October 2019
Richard Ratcliffe, husband of British-Iranian aid worker Nazanin Zaghari-Ratcliffe jailed in Tehran since 2016, holds his daughter Gabriella during a news conference in London. Their five-year-old daughter has arrived back in Britain, after making the “bittersweet” decision to bring her home
AFP/Getty
28/51 10 October 2019
Irish Prime Minister Leo Varadkar and British Prime Minister Boris Johnson at Thornton Manor. Their meeting focused on further Brexit proposals
EPA/Noel Mullen
29/51 9 October 2019
Wales survived an almighty scare against Fiji to secure quarter-final spot at the rugby world cup. Warren Gatland’s side recovered from a 10-0 deficit thanks to a hat-trick from Josh Adams
AFP/Getty
30/51 8 October 2019
Protesters dubbed the Red Rebels at Millbank at the junction with Great College Street, during an Extinction Rebellion protest in Westminster
PA
31/51 7 October 2019
Final preparations are made in front of a reproduction of Michelangelo’s ‘The Last Judgement’, ahead of the opening of for the ‘Michelangelo: A Different View’ exhibition at Hull Minister
PA
32/51 6 October 2019
A car drives through a flooded street in Whitley Bay in Northumberland
PA
33/51 5 October 2019
Thousands took to the streets of Edinburgh today to march in support of a second Scottish independence referendum
EPA
34/51 4 October 2019
A 12ft sculpture of a gorilla, entitled ‘Gorilla Apocalypse’, created by Luke Kite entirely from scrap car bumpers and panels discarded in the last decade is on display at the British Ironwork Centre in Oswestry, Shropshire
PA
35/51 3 October 2019
Police stands in front of the Treasury building during an Extinction Rebellion protest in London
Reuters
36/51 2 October 2019
Ex-Thomas Cook employees demonstrate in London after delivering a petition calling for a full inquiry into Thomas Cook’s collapse and for the company’s directors to pay back their bonuses
AFP/Getty
37/51 1 October 2019
A road in Alum Rock, Birmingham is flooded after persistent heavy rain
PA
38/51 30 September 2019
Two tourists pose for pictures in front of Union and EU flags outside the Houses of Parliament in London
PA
39/51 29 September 2019
A sheep on London Bridge as Freemen of the City of London took up their historic entitlement to drive sheep over the bridge, which was once London’s only river crossing
PA
40/51 28 September 2019
An Aldabra giant tortoise is fed watermelon as a treat at the Malvern Autumn Show, at the Three Counties Showground near Malvern in Worcestershire
PA
41/51 27 September 2019
Gallery assistants pose with an artwork entitled ‘Devolved Parliament’ by British artist Banksy, during a press view in London ahead of Sotheby’s contemporary art sale, as part of the Frieze Art Fair
AFP/Getty
42/51 26 September 2019
England’s Jonathan Joseph is tackled by United State’s Marcel Brache during their group match at the Rugby World Cup in Japan. England scored seven tries on their way to winning 45-7
Reuters
43/51 25 September 2019
Tributes for former Rangers player Fernando Ricksen at Ibrox Stadium. Today, the funeral procession will pass Ibrox Stadium before making the journey to Wellington Church
PA
44/51 24 September 2019
A person dressed as a caricature of Prime Minister Boris Johnson in a prison uniform stands outside the Supreme Court after it ruled that his decision to suspend Parliament was illegal
AFP/Getty
45/51 23 September 2019
Thomas Cook aircraft are parked up at Manchester Airport on the day they collapsed after rescue talks failed. A total of 22,000 jobs – including 9,000 in UK – are to be lost following administration. More than 150,000 British holidaymakers need to be brought home, with the government and CAA hiring dozens of charter planes to fly customers home free of charge
Getty
46/51 22 September 2019
Fire performer Penella Bee performs before people take part in the North East Skinny Dip at Druridge Bay in Nothumberland, an annual event that marks the Autumn Equinox and raises money for MIND – the Mental Health Charity
PA
47/51 21 September 2019
Protesters gather for a march and rally organised by “The People’s Vote” in Brighton, to call for politicians to give the public a final say referendum on Brexit
AFP/Getty
48/51 20 September 2019
Protesters in London joined millions across world to demand urgent action to save planet in the largest environmental protest in history
Angela Christofilou/The Independent
49/51 19 September 2019
Rapper Dave poses with the Mercury Prize: Albums of the Year Award at Apollo
Getty
50/51 18 September 2019
A surfer in action during sunrise at Tynemouth on the north east coast
PA
51/51 17 September 2019
Protesters dressed as the Incredible Hulk and Robocop outside the Supreme Court in London where judges are due to consider legal challenges to Prime Minister Boris Johnson’s decision to suspend Parliament. The Supreme Court will hear appeals over three days from two separate challenges to the prorogation of Parliament brought in England and Scotland
PA
This is the first time that a specific Brexit deal has been modelled into economic growth forecasts by the Bank, stating that the deal leaves it worse off than under previous Brexit assumptions.
Shortly before the BoE’s assessment was published, chancellor Sajid Javid claimed in a speech that Mr Johnson’s Brexit deal was “good for the economy”.
The BoE said that forecasts had previously spread Brexit impacts on GDP over a 15-year period and the timeframe drafted by the deal has resulted in a significant downgrade in the near term.
The projections highlight that a greater proportion of the adjustment to new trading arrangements will take place in the next three years, causing a faster slowdown in growth.
It came as the BoE’s Monetary Policy Committee kept its benchmark interest rate on hold at 0.75 per cent.
However, two of the nine-member committee unexpectedly called for a 0.25 per cent rate cut, citing threats to economic growth and signs that the jobs market may be deteriorating.
It was the first time any MPC member has voted lower interest rates since the aftermath of the EU referendum in 2016.
“If global growth fails to stabilise, or if Brexit uncertainty remains entrenched, monetary policy may need to reinforce the expected recovery,” officials said in the summary of the meeting, published Thursday.
The BoE is increasingly concerned about Brexit uncertainty and a global economic global slowdown, factors which could push it towards making borrowing cheaper to stimulate growth.
Additional reporting by PA news agency
