Bank of England cuts Britain's growth outlook

The Bank of England (BoE) Wednesday cut its prediction for Britain's economic growth in 2015 from 3.1 percent to 2.9 percent and in 2016 from 2.8 percent to 2.6 percent.

In their Inflation Report published Wednesday, the bank said expansion in British domestic demand has continued. But the outlook for global growth has weakened. Growth is projected to be a little weaker than in August.

The bank also emphasized the main downside risk stems from weaker euro-area activity, which would weigh on Britain exports and could be associated with a further rise in financial market volatility.

As lower food, energy and import prices, the country's inflation could fall below 1 percent in the next six months.

Reports said the bank signaled a delay in interest rate rises. Interest rates need to stay at historic lows until next autumn to prevent inflation remaining below its 2 percent target, they added.

"The Inflation Report gave another strong indication that the Monetary Policy Committee (MPC) expects to keep interest rates on hold for a number of months yet," said Samuel Tombs, senior British economist at Capital Economics.

"Regardless of the exact timing of the first hike, the overall picture remains that weak inflation, high debts levels and an intense fiscal squeeze are likely to ensure that the MPC raises interest rates at only a very gradual pace over the coming years. Indeed, we still expect the bank rate to rise to only 1 percent by the end of 2015 and to 1.5 percent in two years time," said Tombs.