Bank warns PM over Brexit plan as it keeps interest rates at 0.75%

Long-term economic forecast cut, dealing a blow to Boris Johnson on eve of EU withdrawal

The Bank of England has warned Boris Johnson on the eve of leaving the EU that his Brexit plan stands to drag down Britain's economic potential, after voting to keep its key interest rate unchanged.

Dealing a blow to the prime minister as he prepares for Britain's formal withdrawal on Friday night after nearly half a century of EU membership, the central bank cut its long-term growth forecasts, warning that Johnson's push for a rapid Brexit would inflict lasting economic damage.