Workers stand on scaffolding at a residential building in London, Britain, March 7, 2016. REUTERS/Toby Melville/File Photo

LONDON (Reuters) - Britain and the euro zone will avoid a recession but face slower economic growth as a result of the decision by British voters to leave the European Union, ratings agency Standard & Poor’s said on Wednesday.

“In short, the sky hasn’t fallen on either side of the Channel, contrary to concerns that the U.K. would soon fall into recession, precipitating a marked slowdown in the rest of the European Monetary Union,” Jean-Michel Six, S&P Global Ratings’ chief economist for Europe, said in a statement.

The Bank of England’s decision to expand its bond-buying programme had calmed the British gilt market and S&P expected the country’s housing market would have only a “soft landing” because of low interest rates.

S&P said it expected British economic growth of 1.8 percent this year, slowing to 1.0 percent in 2017 and 1.1 percent in 2018.