That will be followed by Carney's press conference at 1130 GMT
The central bank will announce no change to the bank rate and leave other monetary policy considerations unchanged later but the inflation report may hold a few surprises for markets to focus on. With Q1 economic growth holding firmer than expected, we could see the BOE allude to that and bump up its economic forecasts in the inflation report.
I reckon that's about the only surprise that can be noted for those hoping for a more hawkish BOE at the top of the hour. Otherwise, expect the same old message that any rate changes will depend on the Brexit outcome and that the central bank's main scenario is still for a smooth Brexit to take place.
With Brexit uncertainty still not abating, the BOE's hands are still tied so any positive spin on the economy is not going to have a major lasting impact on the pound. The headlines may see the pound gather a few bids here and there but in the grand scheme of things, it isn't going to affect the BOE rate hike pricing in a significant manner so if the moves stretch too far, I would opt to fade it instead.
Bottom line is that it's still all about Brexit so no matter what the BOE says here about the economy being better in Q1 or if it upgrades its economic projections slightly, they're still in no position to hike rates any time soon and all of this will just reaffirm their gradual once-a-year rate hike view IF Brexit proceeds smoothly.
