Britain's economy would be "booming" if not for Brexit, the Governor of the Bank of England has said.

Mark Carney said businesses were waiting for the outcome of Theresa May's negotiations with the EU before making investment decisions, which was slowing down economic growth.

He said the bank's predictions for foreign investment in Britain was now 20 per cent lower than they estimated in the month before the referendum.

Speaking to Peston on Sunday, he said: "Since the referendum, what we're seeing is that business investment has picked up, but it hasn't picked up to any of the extent that one would have expected given how strong the world is, how easy financial conditions are, how high profitability is and how little spare capacity they have.