Britain's economic outlook is significantly weaker than three months ago and growth is likely to be flat over the next two quarters due to the fallout from the euro zone crisis, Bank of England Governor Mervyn King wrote in a document published on Monday.
The outlook for output growth in the near term is considerably weaker than even three months ago, he said in an annual report released by the central bank.
It now seems likely that the level of output will be broadly flat over the next six months.
He blamed the euro zone crisis and the associated tensions in global financial markets that have hit world trade and eroded business and consumer confidence.
(Reporting by Peter Griffiths)