The Bank of England (BoE) released its quarterly inflation report on Thursday. The central bank downgraded its growth forecasts. The economy is expected to expand 2.0% in 2016, down from its previous forecast of a 2.2% rise, and 2.3% in 2017, down from its previous forecast of a 2.4% gain.
The central bank said that uncertainty around Britain's membership in the European Union weighed on the economic growth.
The BoE expects inflation in the U.K. to be 0.4% this year, 1.5% next year and 2.1% in 2018.