The Bank of England has kept interest rates on hold at 0.75% but indicated it may have to cut interest rates if global economic growth fails to recover or if Brexit uncertainties persist.
It said the UK economy was expected to pick up from its current weakness.
However, the Bank said it would monitor companies’ and households’ reactions to Brexit as well as global growth.
The Bank’s Monetary Policy Committee voted 7-2 in favour of keeping the official rate on hold.