The bank's Monetary Policy Committee voted to keep its main interest rate at a record-low 0.25 percent following a regular policy meeting.
Former British Chambers of Commerce director general and co-chairman of pro-Brexit lobby group Leave Means Leave, John Longworth, said he agreed that business confidence is "lower than it ought to be".
And he added that if the Brexit process does not go smoothly, it could pose further challenges to the economic picture.
While the BOE says it has a duty to present a realistic assessment of the economy, its latest round of analysis is sure to open it up to fresh criticism from pro-Brexit lawmakers.
'While all countries continued to see ongoing robust growth as we move into the second half of 2017, the overall slowing in the rate of expansion will add a note of caution to European Central Bank policymaking.'GBP EUR Forecast: Fall in Germany Factory Orders to Weigh on Euro? But investors saw no sign that the BoE was in a hurry to raise rates, a contrast to the outcome of its June meeting.
Meanwhile, the MPC has held rates at 0.25%, with only two members, Ian McCafferty and Michael Saunders, voting for a rise to 0.5%.More news: Russian deputy minister blacklisted in new European Union sanctions over Siemens case
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In its quarterly inflation report, also published on Thursday, the bank cut its economic growth for this year and next to 1.7 per cent and 1.6 per cent, down from previous projections of 1.9 per cent and 1.7 per cent, respectively.
It also shaved its growth forecast for next year to 1.6pc from 1.7pc, but kept 2019 at 1.8pc.
It is expected that inflation, which is also referred to as CPIH in the United Kingdom, will increase by 0.1% in the third quarter to 2.7% and predicted to reach 3% in October 2017. "The most striking thing is that they have downgraded the outlook for wages despite lower-than-expected unemployment, and the inflation profile is a bit lower, despite a weaker pound".
"The next move in interest rates is likely to be up, the majority of members are reluctant to consider an interest rate hike at a time of prolonged economic and political uncertainties centered on Brexit, alongside the limited second-quarter GDP developments appearing to suggest increasingly downbeat firms sitting in their industrial and construction investment plans". Recent figures showed the economy had its slowest growth since 2012 in the first half of this year, while inflation has also dipped and growth in wages remains weak.
The MPC now predicts investment in 2020 to be 20 percentage points lower than what it had forecast before the referendum. The growth outlook is subdued and it is hard to see domestic price pressure building to any vital extent despite the low jobless rate. It has been forecasted that the economy would grow by 1.6% in 2018 and this is a cut from the initial expectation of 1.7%, which highlights the "sluggish" growth that is expected.