Bank of England's Carney warns Brexit uncertainty is building
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The uncertainty over Brexit is already weighing on the British economy, Mark Carney, the governor of the Bank of England (BoE) warned on Thursday. 
Carney said that business investment was slower than it would have been expected to be, because of Brexit. "It's evident in our discussions across the country with businesses," he said, "that uncertainties about the eventual relationship are weighing on the decisions of some businesses."
Sterling dropped to a nine-month low against the euro after the downward revision to the growth forecast. And the pound fell about 0.76% to 1.1063 euros.
Bank of England Governor Mark Carney /AP Photo

Bank of England Governor Mark Carney /AP Photo

The BoE is juggling the tricky combination of rising prices caused in large part by the fall in the value of the pound since the June 2016 vote to leave the bloc, and slowing wage growth as the economy loses much of last year's impetus.
Carney point out, investment had been weaker than otherwise would have been expected "in a very strong world" and the consequences of that was starting to build "the speed limit of the economy, if you will, has slowed". 
Within the uncertainty from Brexit Carney believes the Bank expected business investment to pick up from its current "very subdued" levels, but that it was still below historic rates.
AP Photo

AP Photo

Finance minister Philip Hammond said that, it is important to avoid a "cliff edge" when Britain quits the EU in 2019 and to have a transitional deal on trade before a full agreement is reached.
Carney's concerns about the economic impact of Brexit added to "mixed signals" on consumer spending and business investment, as well as wage growth that remained "anemic" even with unemployment at its lowest for more than 40 years.
He also said that whether Britain's large current account deficit was sustainable remained an open question, "one whose answer depends crucially on the outcome of the Brexit negotiations".
(With inputs from Reuters) 
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