“As yet, there was no clear evidence of a sharp general slowing in activity” the report of the Bank of England read.
 
According to BoE's regional agents, who speak regularly with companies, business uncertainty had risen markedly but most firms did not plan to cut hiring or investment.
 
However, still most economists predict the British economy will suffer a recession in the coming year and most expect the Bank of England will need to cut rates on August 4, based on a poll conducted by Reuters.
 
Last week, the British central bank decided to keep interest rates on hold but it added most of its policymakers expected to approve a stimulus package at their next meeting August 4.
 
This could include a rate cut, but also a resumption of bond purchases and other measures to boost bank lending.
 
The Central Bank’s chief economist Andy Haldane said on Friday that he was willing to use a “sledgehammer to crack a nut” in cushioning any slowdown. But another policymaker, Martin Weale, said the case for action in August had not yet been made.
 
The report which was published on Wednesday also dented demand at an auction of 1.5 billion pounds ($1.97 billion) of 20-year government debt. Among other things, it suggests the risk the full impact of the Brexit vote is yet to be felt.
 
Earlier this month the BoE said it expected the economy to slow markedly as a result of the decision to leave the EU, and on Tuesday the International Monetary Fund cut its growth forecast for Britain next year to 1.3 percent from 2.2 percent.
 
“There were a few reports of planned foreign direct inward investment being postponed” the report read. “A number of companies were considering alternative European locations for aspects of their business, and some contacts within large international firms expected their continental European operations to receive a greater share of future investment than their UK ones” it added.
 
Meanwhile, European Union President Donald Tusk said on Wednesday that he hoped to bring about a “velvet divorce” with Britain, during a telephone conversation with new Prime Minister Theresa May.


A spokesperson for Ms. May said on Wednesday that Britain will give up its planned presidency of the European Council, due to start in July 2017, to focus on negotiating the country's exit from the European Union.
 
“The Prime Minister suggested that the UK should relinquish the rotating Presidency of the Council, currently scheduled for the second half of 2017, noting that we would be prioritizing the negotiations to leave the European Union” the spokeswoman said.
 
“The Prime Minister explained that we will need to carefully prepare for the negotiations to leave the EU before triggering Article 50” she said, referring to the formal legal process for leaving the bloc.
 
“Donald Tusk reassured the Prime Minister that he will help to make this process happen as smoothly as possible.”
 
A spokesman for Tusk said there had been no decision yet on who would take up the vacant slot, and that discussions on the issue would begin immediately between ambassadors.