The bank on Thursday also softened its language on the prospect of interest rate cuts, saying they "might" be necessary if global growth improved and Brexit uncertainty abated.
But with the 2019 United Kingdom election perceived as one of the most unpredictable public polls since the 2016 Brexit referendum, forecasts are for prevailing political uncertainty in the weeks ahead.
The bank's Monetary Policy Committee (MPC) warned in its last rates decision over the damage being inflicted by "entrenched" Brexit uncertainty.
And in an unexpected sign of discord within the bank, two members of the monetary policy committee voted to lower interest rates.
This comes despite its counterparts in Europe and America recently moving to reduce rates in the face of slowing global growth.
The British currency fell to its low point in almost two weeks - down as much as $1.2794 GBP=D3 .
Britain's general election on December 12 has the potential to affect the outcome of Brexit, which is now scheduled for January 31 after another extension to the departure date.
Though waning fears of a no-deal Brexit should help cushion growth in the near-term, the bank said the British economy will grow by around 1% less over the coming three years than it forecast just three months ago. The main opposition Labour Party wants to renegotiate that deal and then put it to the people in another referendum with an option for Britain to remain in the EU.
The central bank forecast growth of 1.25% this year, a similar pace in 2020 as a free-trade accord is negotiated, and slightly faster growth of 1.75% in 2021.
U.K. Prime Minister Boris Johnson argues a Brexit deal can release a pent up flood of investment. These agreements are expected to remove some of the uncertainty facing businesses and households, and the MPC projects that UK GDP growth will pick up during 2020.
This is the first time that a specific Brexit deal has been modelled into economic growth forecasts by the bank, stating that the deal leaves it worse off than under previous Brexit assumptions.