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Economists forecast that just one policymaker, Kristin Forbes, will vote for a rate rise, sticking to the position she adopted at the last meeting in March amid worries about inflation picking up too fast.

The projected overshoot entirely reflects the effects of the falls in sterling since late November 2015 on import prices. That was before official data showed Britain's economy lost a lot of its momentum in the first three months of 2017 when it expanded at a quarterly pace of 0.3 percent, half the BoE's forecast.

The sudden slowdown the BoE expected did not materialize but signs are growing that consumer spending is now wilting in the face of rising inflation, fueled partly by the pound's plunge following the Brexit vote.

The most recent figures show that workers are already worse off-real wages are declining, as the 2.3 percent inflation rate is outpacing wages growth, now running at just 1.9 percent compared to February of past year.

It will present the latest Inflation Report on Thursday, which is published four times a year, detailing its latest growth and inflation forecasts and noting risks to the economy.

Earlier this year the markets judged that the chances of an interest rate rise were so low there was only likely to be one increase over the next three years.

The Bank of England has warned households that living standards will fall this year as the Brexit vote works its way through to higher prices and meagre pay deals.

"The pound and the strength of the United Kingdom economy, in general, have exceeded expectations by proving resilient, despite warnings from the BOE in the lead up to the referendum", Paresh Davdra, CEO and Co-Founder of RationalFX said as cited by Daily Star. The bank's inflation forecast for 2017 was upgraded to 2.8%.

The change in fortunes is reflected in the outlooks for monetary policy on each side of the English Channel, with Carney set to leave interest rates lower than they might have been without Brexit, and Draghi nearing the moment he can start tightening.

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Exactly a year earlier, his 2016 opening - titled "The Turn of the Year" - gave a far more detailed view of rates and why they weren't going up.

This could see the Bank push up its near-term inflation projection, from a peak of 2.8% previously pencilled in, while slightly lowering forecasts further out, he said.

He said Brits should expect a "squeeze" on real wages this year, because wage growth wont be sufficient to compensate for the rising prices in shops.

Yet despite the slower near-term growth the Bank emphasised that bank rate, the interest rate available to other lenders, could rise "by a somewhat greater extent" than markets were pricing in, if its predictions of a continued pick-up in growth are accurate.

It expects nearly no increase in real incomes this year and sluggish consumer spending, though that will be offset by investment and exports. Last year Britain's economy grew 1.8 percent. Since then, markets have moved to price in around two rate rises.

There will be eight MPC members voting instead of the usual nine, as Charlotte Hogg resigned in March.

"It doesn't take much for the uncertainty around Brexit to (lead to) lower investment and a weaker labour market". The rest of the committee also appeared to be more open to considering tighter policy, she said.

USA academic Kristin Forbes, who leaves the MPC at the end of June, again voted to raise rates to 0.5% and warned that the overshoot in inflation could become more protracted without tightening policy now.