The Bank of England has held the Bank Rate at 0.75% as it cut forecasts for UK growth over the next two years.

The Bank left interest rates unchanged at 0.75% against a backdrop of weaker global growth and the prospect of a no-deal Brexit. .

The Bank’s MPC also cited trade tensions between the US and China.

Ben Kumar, investment strategist at 7IM, said: “It’s no surprise that the Bank of England’s Monetary Policy committee has decided to do nothing.

“While there are all sorts of bits of data in the quarterly report - including a projection for inflation to fall in the short term before picking up again in 2020 - the big problem is nothing to do with economics.

“At the end of August, the world’s central bankers all meet up in Jackson Hole, Wyoming.

“The British and American contingents will recognise the looks in each other’s eyes – that of people trying to deal with something outside of their control.
 
“For the Jay Powell’s American All-Stars, the random element is Donald Trump’s trade war with China.

“In the UK, Mark Carney faces a similar problem with Brexit.

“No economic textbook mentions these kind of events, and no model can help with forecasting the outcome.
 
“For the Bank of England, under normal circumstances, recent strong wage growth data and the recent sterling weakness would suggest that the Monetary Policy Committee should raise interest rates.
 
“However, with a new Prime Minister still on his victory tour, and the prospect of leaving the EU with no deal becoming increasingly real, the MPC has no choice but to remain in wait and see mode.”