The Bank of England has flagged a one-in-three chance that the UK economy will shrink at the start of next year as Brexit uncertainty and global trade tension hit growth.
Even without taking into account the rising possibility of a no-deal Brexit, the BoE cut its central forecast for growth this year and next.
It predicted output would rise 1.3 per cent in both 2019 and 2020 even if it were to cut interest rates, as markets expect. The BoE had forecast in May that output would grow by 1.5 per cent and 1.6 per cent respectively.
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