During the press conference, Carney told reporters that the recalibration policy was not clear and could go either way. In particular, the Bank faces a cloud of uncertainty regarding Brexit, which has been pressuring sterling since the vote took place last year.
Carney stressed that rates would "gently" rise as inflation eases in the foreseeable future. The central bank expects the inflation rate to have peaked at 3.2 percent in October — and will be at 3 percent for the year as a whole. The bank had previously said that inflation would be 2.8 percent for 2017.
However, some analysts believe the BOE will see a surprise in inflation figures. Samuel Tombs, chief U.K. economist at Pantheon Macro, said in a note: "Just as the Committee was caught out by how quickly sterling's depreciation boosted inflation, so it looks vulnerable to underestimating how quickly the import price shock will fade. We think it will be another 12 months before Bank rate rises again, about six months longer than markets expected before this meeting," he added.