The International Monetary Fund has cut its UK growth forecasts again on the back of the Brexit vote.

In July, soon after the 23 June referendum, the IMF cut its 2016 GDP growth forecast from 1.9 per cent to 1.7 per cent and the 2017 forecast from 2.2 per cent to 1.3 per cent.

Today it has trimmed the 2017 forecast further to 1.1 per cent, although it has revised up this year’s growth forecast to 1.8 per cent on the back of stronger than expected growth in the second quarter of the year.

The Fund said it has also revised down its medium term GDP growth potential forecasts for the UK from 2.1 per cent to 1.9 per cent due to the expectation that lower migration, trade and capital flows would take a toll.

Survey results and some "hard" data from the Office for National Statistics since the vote has come in stronger than expected and City of London economists have been revising away their expectations that the UK will enter a new recession this year.

The Bank of England is currently forecasting growth of 0.3 per cent in the third quarter of the year, following a 0.7 per cent expansion in the second quarter.

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