Bank of England Deputy Governor Minouche Shafik said on Friday that the Britain's outlook have not deteriorated despite low long-term interest rates. She added that she expects wage growth and productivity growth to pick up in the U.K.

"I think it is reasonable to expect that resumption in productivity growth to come over the next year or so as the continued narrowing of slack in the labour market raises the incentive to increase output by increasing output per worker," she noted.

Shafik also expects inflation to pick up as oil prices will stabilize.