Meanwhile, inflation is eroding wage growth, which is now below 1% despite conditions of near full employment.
Sterling fell to a day's low of $1.352, reversing earlier gains, and the yield on two-year British government bonds, which are sensitive to monetary policy expectations, fell modestly.
Another underlying assumption was market pricing for the Fed funds rate, the U.S. central bank's target interest rate, to be at around 2.5% towards the end of 2019.
United Kingdom unit labour costs on the other hand, were now seen growing more quickly this year, by 2.75% versus previous forecasts for an increase of 2.0%. Surveys have suggested little rebound last month.
Kolkata Knight Riders bat their way to victory against Kings XI Punjab
Skipper Ravichandran Ashwin and Andrew Tye did their best to push the score beyond 200, and maintain a healthy net run-rate. Every batsman who took charge played breezy cameos, which never allowed the momentum to shift to the opponents' camp.
Alongside the decisions, the Bank of England also released its quarterly Inflation Report, providing an update on its economic forecasts, predicting that the United Kingdom economy will grow at average of around 1.75% over the next handful of years.
What is the base rate?
But with growth slowing, the central bank could struggle to raise rates at all this year, he added.
Economists and analysts were divided as they tried to make sense of the Bank of England's decision to keep rates on hold while trimming its economic forecast. The reason is that the bank anticipates that the effect from the past sterling weakness is fading faster than previously thought.
The rise in the oil price, now up over 50% since September last year, hasn't as yet prompted a re-evaluation in this year's economic forecasts but as can be seen from recent weak consumer data, in Europe, the United Kingdom, as well as the USA, it could well be starting to have an effect in some of the more recent retail sales numbers.
Real 6-0 Celta: Bale scores brace in Los Blancos classic win
Wass saw his point-blank header palmed out by Navas five minutes before the break, but that was nearly Celta's last resistance. Iago Aspas could return from injury for Celta Vigo but Emre Mor and Nemanja Radoja are major doubts.
Bank of England officials, including Governor Mark Carney, had appeared to endorse that expectation and their decision to not follow through has led to accusations they are becoming unpredictable.
Currently, the Bank of England rate stands at 0,5% and is expected to rise to 0,75%, probably later this summer rather than now.
But slowing consumer lending and a sluggish housing market created greater-than-usual uncertainty about consumer demand, the BoE said.
In the updated forecasts, the United Kingdom central bank sees growth at 1.4 percent this year, down from 1.8 percent in February.
In comments after the bank held its main interest rate at 0.5 percent, Carney said the sharp economic slowdown witnessed in the first quarter was likely a temporary phenomenon related to the bad weather that gripped much of the country. Wage growth was forecast to pick up slightly less strongly this year than had been forecast before. However, much will depend on whether Carney and the Bank's staff attribute the recent weakness of the economy to poor weather in the United Kingdom earlier this year or regard it as a fundamental problem.
UFC 224 Play-By-Play: Mackenzie Dern Quickly Submits Amanda Bobby Cooper
Dern wanted to make the quick turn around for this fight at UFC 224 because it was in her adopted hometown of Rio de Janerio. Despite the fact that Mackenzie Dern missed weight by seven pounds, her fight against Amanda Cooper at UFC 224 will proceed.
The base rate last changed in November 2017, having been at a record low of 0.25% for the previous 15 months. This is something that Mr Carney hasn't always been particularly good at, while the votes of Saunders and McCafferty will also be scrutinised.