This would see the UK avoid a technical recession, defined as two consecutive quarters of economic decline. Growth in 2017 is now forecast at just 0.8pc, down from a previous forecast of 2.3pc in May.  Bank staff calculated that the Brexit vote had ­“conservatively” knocked 2.5 percentage points off growth over the next three years, even after accounting for the stimulus measures it announced.  The National Institute of Economic and Social Research policies calculated that the Bank’s policy measures could stimulate the economy by as much as 0.5pc over the next two years.  However, the Resolution Foundation said the impact of the weaker pound on inflation was likely to hit average real earnings by £615 in 2018.  Policymakers warned of higher unemployment, falling house prices and shrinking business investment following the decision to leave the EU.  The minutes of their meeting also showed that a “majority” of members believed that “a case could be made for cutting Bank Rate “immediately” to just above zero, although they decided to wait for further evidence.  Kristin Forbes, who recently wrote in the Telegraph that policy­makers should “keep calm and carry on”, was the only one of the nine Monetary Policy Committee members to vote against the corporate bond purchases.  The MIT professor was joined by Ian McCafferty and Martin Weale in voting against expanding QE. They said the “deterioration in recent surveys and confidence measures observed in the aftermath of the referendum may overstate the weakness of the economy”.  Inflation is projected to climb to almost 2.5pc in three years, above the MPC’s 2pc target.
The Bank of England has unveiled a four-pronged stimulus package designed to boost the economy and prevent a recession following the vote to leave the European Union.