However, he said that there could be a silver lining in PM Boris Johnson's plans to boost growth.
Britain was moving to address its main economic problem - weak productivity.
In an environment where everything is getting a fresh look, it's fertile ground for taking a step back and making bigger changes than otherwise might have been made.
It's early days but there are several initiatives - the budget will be telling - that suggest that some of these opportunities are being grasped.
It's absolutely clear in the data, whether both the survey data and the hard data, that it's had an impact, a notable impact on investment and of course that flows through to productivity.
Brexit could prove to be a conceptual positive for Britain as it finds its feet outside the EU.
It is a major reordering of our relationship not just with the European Union but our trading relationships with the rest of the world and it is prompting a reassessment of economic policy, structural economic policy in the country.
We are already seeing a rebound in confidence, business confidence and to some extent a firming of consumer confidence.
We are watching it closely, as are other central banks and fiscal authorities, and if it necessitates some form of action, whether it's on the macro-prudential side or the policy side, we will take it.
Meanwhile, the GBP/USD pair is seen correcting Thursday's extensive rally, as the bears continue to guard the 1.31 barrier. At the press time, the spot drops 0.15% to 1.3020 levels.
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