Forecasters at the National Institute of Economic and Social Research (NIESR) have predicted the Bank of England is unlikely to raise interest rates until Brexit negotiations are over.
The think-tank said the economy has fared well since the Brexit vote but there are concerns that reduced trade with remaining members of the European Union will impact economic growth in the future.
Simon Kirby, head of macroeconomic modeling and forecasting at NIESR, told Bloomberg: "We assume that interest rates remain unchanged until we exit the European Union.
"If the chance of a transitional deal does begin to materialize, it might well be that the Bank of England brings forward the point at which it raises interest rates, but at the moment, that does not appear to be on the cards."
Prime Minister Theresa May previously said it will take two years to negotiate a new trade deal with the EU before calling a snap election next month.
Meanwhile, the Financial Times has reported the minutes from the latest Bank of England Monetary Policy Committee meeting are likely to show an increase in the number of members voting for a rate hike.
At the meeting in March, only Kristin Forbes voted for an increase in rates but fellow member Michael Saunders has recently made a speech to the Federation of Small Businesses making the case for higher interest rates
If both members vote in favour of an increase, the MPC would be split 6-2 in favour of holding rates at a record low of 0.25%, the most members voting for a rate rise since 2014.
The MPC only had eight members in this month's meeting as it is yet to replace Charlotte Hogg, former deputy governor who resigned in March.
The chairman isn’t answering his email
Reforms not enough
An economic cocktail
To encourage consumers to shop around
Will report to Pat Shea