The Bank of England has warned there is a one-in-four chance of the economy slipping into recession at the end of 2019.
Economic growth is expected to be at 1.2% this year, down from its forecast of 1.7%.
This would be the slowest rate of growth since the UK economy was in recession in 2009.
The fall in growth has been attributed to a decline in business investment and house-building.
Brexit factor
The Bank of England has stated that economic uncertainties are escalating as Brexit draws closer.
In a survey of 208 UK firms conducted by the bank, it was revealed that at least half are putting in plans in case of a no deal Brexit.
Interest rates have been kept on hold at 0.75%, with businesses being cautions in the run up to Brexit.
Experts have stated that this interest rate freeze is only a short term solution.
Once Brexit uncertainty is lifted, many believe that interest rates will need to be raised to deal with an accelerating economy.
However, the Bank of England also noted the strong UK labour market. Unemployment has remained at a steady rate of 4%.
There was also a rise in the average number of hours worked and increasing wage growth.
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HeadlineUK economy could slip into recession, Bank of England warns
Short HeadlineUK economy could slip into recession, BofE warns
StandfirstBritain experiencing slowest rate of economic growth since 2009.
The Bank of England has warned there is a one-in-four chance of the economy slipping into recession at the end of 2019.
Economic growth is expected to be at 1.2% this year, down from its forecast of 1.7%.
This would be the slowest rate of growth since the UK economy was in recession in 2009.
The fall in growth has been attributed to a decline in business investment and house-building.
Brexit factor
The Bank of England has stated that economic uncertainties are escalating as Brexit draws closer.
In a survey of 208 UK firms conducted by the bank, it was revealed that at least half are putting in plans in case of a no deal Brexit.
Interest rates have been kept on hold at 0.75%, with businesses being cautions in the run up to Brexit.
Experts have stated that this interest rate freeze is only a short term solution.
Once Brexit uncertainty is lifted, many believe that interest rates will need to be raised to deal with an accelerating economy.
However, the Bank of England also noted the strong UK labour market. Unemployment has remained at a steady rate of 4%.
There was also a rise in the average number of hours worked and increasing wage growth.
