The Bank of England base rate has been held at 0.75%, as expected.
The Monetary Policy Committee again voted unanimously to hold the rate.
The Bank said in a statement: “Globally, trade tensions have intensified. Domestically, the perceived likelihood of a no-deal Brexit has risen.
“Trade concerns have contributed to volatility in global equity prices and corporate bond spreads, as well as falls in industrial metals prices. Forward interest rates in major economies have fallen materially further.
“Increased Brexit uncertainties have put additional downward pressure on UK forward interest rates and led to a decline in the sterling exchange rate.
“As expected, recent UK data have been volatile, in large part due to Brexit-related effects on financial markets and businesses. After growing by 0.5% in 2019 Q1, GDP is now expected to be flat in Q2.
“That in part reflects an unwind of the positive contribution to GDP in the first quarter from companies in the United Kingdom and the European Union building stocks significantly ahead of recent Brexit deadlines.”