The Bank of England's decision to keep interest rates on hold and raise its growth and inflation forecasts for 2017 has left the London market pretty underwhelmed.

A short while ago the FTSE 100 was barely changed at 6,815.41 which is a fall of 0.44% or 30 points. 

Mark Carney says financial markets have made a much more negative projection about the type of Brexit we will have - and its effect on growth - than the Bank has.

"Those are judgments, they are not based on facts, because the [Brexit] negotiation process has not really begun yet," he adds. 

The MPC made it clear in its statement that "there are limits to the extent to which above-target inflation can be tolerated.  "Those limits depend, for example, on the cause of the inflation overshoot, the extent of second-round effects on inflation expectations and domestic costs, and the scale of the shortfall in economic activity below potential."   

Asked about this at the press conference, Mark Carney said the MPC was looking at what happens to supply, demand and the exchange rate, and it was the balance of those that would determine whether additional easing or tightening of monetary policy would be appropriate. 

Since the summer, he added, demand had been stronger, not much has been learned about supply and there's been a bigger inflation overshoot because of the fall in the pound. 

So he said the stance of MPC policy at present was appropriate and "we have a neutral bias" to policy going forward.

Commenting on the High Court ruling on Article 50, Bank of England governor Mark Carney said: "It is an example of the uncertainty that will characterise this process."

Mark Carney says says that while growth will be stronger in the short term, it will be weaker than forecast in the medium term.  

CPI inflation is also set to be higher than previously thought over the next three years, because of the depreciation of sterling. 

As a result, he says "lower real income growth" is inevitable. 

"The only question is how this comes about. It can happen either through the compression of nominal wage growth and higher unemployment, or through a faster rise in consumer prices and a slower rise in joblessness." 

The MPC favours the latter path - but says there are limits to how much inflation can be "tolerated".

Mark Carney is giving a press conference. Since August demand growth has been "materially better", he says, which explains the upwardly revised forecasts.  

He says MPC had missed strong consumption growth in its previous forecasts - jobs and employment are also growing. 

Positive consumer sentiment is also supporting the housing market, he says. 

The pound is now up 1.45% against the dollar, following the publication of the Bank of England's forecasts and an earlier boost from the Supreme Court ruling allowing MPs to vote on the triggering of article 50.  

Peter Hemington, head of corporate finance at accountants BDO, reckons there is only so much the Bank of England can do to boost the economy.

It is now up to Philip Hammond who presents his first Autumn Statement as Chancellor on 23 November.

He says: “We are at the point where monetary policy can’t do a lot to help the economy – even though a boost to growth is definitely needed. So we understand why the Bank of England has felt itself unable to do anything this month.

"The attention now shifts to the Chancellor, who has a golden opportunity to make a name for himself in the Autumn Statement by using fiscal policy to address the UK’s current economic woes.”

Despite gloomier forecasts on inflation, the Bank of England has said it expects the UK economy to grow by 2.2% this year up, up from 2%.

It's also revised its 2017 figures to 1.4% - up from 0.8% - although it's cut its outlook for 2018 to 1.5% from 1.8%.