Britain's economic growth will remain subdued in the short term despite a rate cut of a quarter of a percentage point last Thursday, the country's central bank said in a report made public on Wednesday.

The Bank of England said the economic growth had slowed slightly a little below trend, seen at around 2.5 percent annually, in the near term, due to sluggish consumer spending.

But growth would pick up as house prices rise and the cut of interest rates filters through.

The report, which was prepared for last week's rate-setting meeting, warned that inflation driven by high oil prices is expected to move above its target of 2 percent in the near future but it would eventually dip as the impact of recent increases in oil prices wanes and pressures on capacity ease.

The Bank of England's Monetary Policy Committee has been given the job of keeping the country's inflation rate within 2 percent over a two-year planning horizon.

At a meeting last week, the policy makers of the committee decided to cut the interest rate to 4.5 percent from 4.75 percent to keep inflation on track to meet the medium-term target.

Source: Xinhua