Swiss bank UBS lowered growth forecasts for the British economy

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Swiss bank UBS revised its forecast for economic growth in the UK in 2019 amid fears about the country's withdrawal from the EU. The forecast for the first quarter of the year was changed from 0.3% to 0.2% of GDP growth, for the second quarter - from 0.6% to 0.4%, for the third quarter - from 0.6% to 0.5%. Revision of quarterly indicators led to a decrease in the annual growth forecast from 1.8% to 1.5%. Brexit's uncertainty hampers the development of the UK private sector. The country must withdraw from the EU on March 29, 2019. However, if there is no agreement on Brexit, and the European Union does not make concessions, Britain’s withdrawal from the EU may be delayed.

Bank of England will not raise rates in the near future. Interest rate increase by 25 basis points is expected in November 2019 and May 2020.

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