The Bank of England opted to hold the benchmark interest rate at 0.50 percent, moving in line with expectations, with a 7-2 vote from the monetary policy committee members.
The same two members, who called for a rate increase last month, Ian McCafferty and Michael Saunders, voted to raising the borrowing cost.
The BOE also left the amount of asset purchases unchanged, as the latest data suggested the economy is not strong enough to withstand a rate hike.
Now, the BOE predicts the U.K. economy to expand 1.4 percent this year, down from previous estimates of 1.8 percent.
Growth in 2019 and 2020 has been slashed to 1.8 percent and 1.9 percent.
The majority of policymakers opted to leave interest rate this month until making sure that first quarter’s slowdown in growth was temporary.
“There was value in seeing how the data unfolded over the coming months, to discern whether the softness in Q1 might persist,” the meeting minutes said.
However, the BOE mentioned that interest rate could rise in the coming months, but this would depend on the economic data and would occur at a gradual pace.
The economy is still negatively affected by the uncertainty surrounding the Brexit, yet it took advantage of the” strong global demand and accommodative financial conditions.”
As of 11:11 GMT, the British pound traded lower at $1.3523, compared to
the session’s peak of $1.3617.