The Committee's May Inflation Report now predicts that Bank Rate will rise to around 1% by the end of the forecast period in 2022, lower than in the February Report.
By Jill Ward, Lucy Meakin and David GoodmanMark Carney said the Bank of England would raise interest rates by more than investors are predicting if the United Kingdom successfully manages a smooth exit from the European Union. It said growth would slip back to 0.2% in the second quarter as businesses waited for the outcome of Brexit talks with the EU.
BoE Governor Mark Carney later told a news conference that rates would have to increase more quickly than markets now anticipate - if the predictions proved correct. The vote among BoE policymakers to hold the interest rate at 0.75 percent was unanimous, but they opined that in the future, higher borrowing costs seem inevitable.
In a news conference, Mr Carney said: "If something broadly like this forecast comes to pass.it will require interest rate increases over that period and it will require more, and more frequent interest rate increases, than the market now expects".
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The Bank's latest quarterly inflation report revealed it expects a first-quarter growth spurt thanks to Brexit stockpiling, but cautioned the boost will prove to be temporary as uncertainty reigns.
"I am both fully absorbed by and very privileged to have the job I have at the moment", Broadbent said in a BBC radio interview following the central bank's decision to keep interest rates on hold on Thursday.
The BoE added that the "subdued pace (of GDP expansion) reflects the impact of the slowdown in global growth and ongoing Brexit uncertainties".
Mr Carney stressed that while the global economic outlook has improved, "domestic tensions remain".
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"The underlying path of GDP progress seems to be barely stronger than beforehand anticipated, however marginally under potential", the BoE mentioned.
Consumer spending is holding up well, however, according to the Bank, despite easing conditions in the property market.
Experts and commentators had expected that the central bank would respond with a wait-and-see approach as Britain was still in the period of Brexit uncertainty.
More businesses are also now prepared for a possible no-deal Brexit, with Bank survey results showing two-thirds of firms are prepared, although many of those believe they are as "ready as they can be".
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There is speculation that finance minister Philip Hammond could again look beyond Britain's shores to fill the role - potentially favouring former Reserve Bank of India chief Raghuram Rajan - or seek a first female governor for the BoE.