Bank of England 1

The UK economy will not grow as fast as expected in 2016, the Bank of England has said.

In its latest report, the central bank said the economy is likely to grow by 2.2% this year, down from the growth of 2.5% it forecast in November.

The Bank's nine-member Monetary Policy Committee also voted unanimously in favour of keeping interest rates on hold at 0.5%, bucking the recent trend of one member, Ian McCafferty, voting in favour of a slight increase.

The report also forecast slower wage growth for the year, adding to gloomier pictures of the economy. Having forecast pay to rise by 3.75% this year just three months ago, the Bank of England now expects wages to rise by 3%.

Growth in the economy is also likely to be slower in 2017, the Bank says. It downgraded its forecast for next year from 2.7% to 2.3%.

Earlier today, one of the world's leading figures on turmoil in global markets told the BBC that Mark Carney, the governor of the Bank of England, has been "too aggressive" in his narrative on interest rates. Dominic Rossi, global chief investment officer of equities at the world’s second largest fund manager, Fidelity, said Mr Carney was confusing financial markets with the Bank's policy of 'forward guidance'.

Do you still have confidence in the economy for 2016? Have your say in the Smith & Williamson Enterprise Index.