The pound slipped against its major counterparts in the European session on Thursday, after the Bank of England kept its interest rate unchanged and slashed the forecast for U.K. growth this year citing a slowdown in household spending.

The BoE monetary Policy Committee, governed by Mark Carney, voted 7-1 to maintain the bank rate at 0.25 percent. The committee also voted unanimously to maintain the asset purchase programme at GBP 435 billion.

"The Committee judges that, if the economy follows a path broadly consistent with the May central projection, then monetary policy could need to be tightened by a somewhat greater extent over the forecast period than the very gently rising path implied by the market yield curve underlying the May projections," the bank said.

In the Inflation Report, the bank downgraded its 2017 growth outlook to 1.9 percent from 2 percent, while that for 2018 was lifted to 1.7 percent from 1.6 percent.

The bank forecast inflation to rise to 2.7 percent in the second quarter of 2017 and then to 2.6 percent in the second quarter of next year.

The currency has been already undermined by downbeat U.K. industrial production and widening trade deficit in March since early European deals.

Figures from the Office for National Statistics showed that the UK visible trade deficit widened in March.

The visible trade deficit increased to GBP 13.44 billion from GBP 11.44 billion in February. The expected level was GBP 11.6 billion.

Separate data showed that UK industrial production declined for the third consecutive month in March.

Industrial output fell 0.5 percent month-on-month, following a 0.8 percent drop in February. Production was expected to decrease 0.4 percent.

Meanwhile, the pound was an excellent performer since last month after the U.K. Prime Minister Theresa May had called for a snap general election on June 8. The pound has rallied 1.1 percent against the greenback, 6.17 percent against the yen and 2.02 percent against the franc since May's announcement on April 18.

The pound held steady against its major counterparts in the Asian session, with the exception of the yen.

The pound depreciated to a 2-day low of 0.8441 against the euro, down by 0.5 percent from Wednesday's closing value of 0.8399. The pound is likely to find support around the 0.86 region.

Data from the European Commission showed that euro area economic recovery is expected to continue at a largely steady pace this year and next and economy is set to expand at a faster pace this year than expected earlier.

In its Spring Forecast, the European Union executive raised the Eurozone growth forecast for this year to 1.7 percent from 1.6 percent.

Reversing from an early high of 147.96 against the yen, the pound dropped to a 2-day low of 146.74. The pound is seen finding support around the 144.00 mark.

Data from the Ministry of Finance showed that Japan logged a current account surplus of 2.907 trillion yen in March. That exceeded forecasts for 2.593 trillion yen and was up from 2.813 trillion yen in February.

The pound dipped to 1.2868 against the greenback, a weekly low, and marks a 0.5 percent slide from yesterday's closing quote of 1.2938. Continuation of the pound's downtrend may see it challenging support around the 1.27 area.

The pound, having advanced to 1.3064 against the franc at 1:30 am ET, reversed direction and hit a 2-day low of 1.2970. At Wednesday's close, the pair was valued at 1.3051. If the pound-franc pair extends slide, it may target 1.28 as the next support level.

Looking ahead, the U.S. weekly jobless claims for the week ended May 6 and producer prices for March are set for release in the New York session.

New York Fed President William Dudley speaks at the Interaction with President Dudley" in New York at 10:00 am ET.

The European Central Bank executive board member Peter Praet gives Lecture on "The Role of the ECB: Prudence and Responsibility in Crisis Times" at 29th Heidelberg Symposium "verAntworten" in Germany at 11:30 am ET.

At 11:35 am ET, the European Central Bank President Mario Draghi and executive board member Benoit Coeure participate in G7 Finance Ministers and Central Bank Governors meeting in Bari, Italy.

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