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Movements in the Bank’s official rates can have big affects on UK households.

A rise would mean that around four million households with variable or tracker rate mortgages would see an increase in their monthly payments.

However, it would give the nation’s 45 million savers a lift, as they would be likely to see improve interest income.

As recently as February economists were expecting the Bank to raise interest rates in May, but that view changed after figures released last month showed the economy grew just 0.1% in the first three months of the year.

The slowdown was caused by the so-called Beast from the East – severe weather which shut down construction sites, kept shoppers at home and caused transport chaos.

However, the Bank described that as a “temporary soft patch” with “few implications” for the outlook for the economy.

The financial markets are now indicating there will be an interest rate increase towards the end of the year followed by another next year, and another in 2020.

The Bank also expects growth of 1.4% in 2018, down from its previous forecast of 1.8% made in February.

However, it says that cut is almost entirely due to the disruption to the economy caused by the bad weather that hit the country in March.

It expects a rebound in the coming months and notes that unemployment remains low.

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As expected the Bank of England has kept rates on hold at 0.5%.

That follows an MPC vote of 7-2 in favour.

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Many experts believe it is unlikely that the Bank of England will choose to raise interest rates until the summer, but how will this affect sterling?

"For the pound, this is crucial. After its recent sharp falls it is now showing signs of stabilising at around $1.35 and it is quite possible that the currency markets have underpriced the possibility of both hawkish comments by Carney and relatively optimistic forecasts by the Bank," said Martin Essex, analyst and editor at DailyFX.

“If so, traders are likely to decide that sterling has been oversold and begin to buy it back, reducing some of the losses since it came close to $1.44 in April before being knocked back by Carney’s comments to the BBC and the weak economic growth figures.”

Food bills could rise sharply if there is no free trade deal with the European Union after Brexit, peers have warned.

The Lords EU Environment Committee said it was "inconceivable" there would be no impact on EU produce, which makes up 30% of the UK's food imports.

While better-off customers could afford to buy more expensive home-grown goods, it said, those on lower incomes could be left with lower-quality imports.

Officials said the UK's aim was to ensure the "smooth flow" of goods.

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Melrose has said it will review the potential bonuses its executives could earn following the group’s takeover of GKN.

Its four top executives - Simon Peckham, David Roper, Christopher Miller and Geoffrey Martin - each stand to make £170m if they deliver on their turnaround plans for the engineering giant.

However, Melrose shareholders have hit back at the rewards, with adviser Glass Lewis urging investors to oppose them at the firm's annual general meeting.

Each of the executives was paid more than £40m last year.

In a statement, Melrose said that “given the recent acquisition of GKN, the board intends to review the existing Melrose remuneration arrangements”.

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Shares in RBS have jumped 4.6% to 288.60p after the bank agreed to pay a $4.9bn fine to the US Department of Justice (DoJ).

It brings to a close a long investigation into its conduct before the financial crisis.

David Madden of CMC Markets UK says:

"The UK government still owns 71% of RBS, and now that the bank is close to reaching a settlement with the DoJ, it could pave the way for Westminster to trim its shareholding.

"The prospect of the DoJ fine being put to bed, coupled with the government potentially reducing its position in RBS, is boosting investor confidence.

"The share price has broadly been pushing higher since June 2016, and if the bullish move continues it could retest 304p."

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Weak production and construction growth is likely to offset an uptick in UK exports, says Suren Thiru, head of economics at the British Chambers of Commerce.

Commenting on today's ONS data, he said: "Despite the narrowing in the UK’s trade deficit in Q1, with the construction sector in recession and manufacturing output slowing, this is further confirmation that the UK’s economic performance in the opening months of 2018 has been underwhelming.

“While export activity remains strong amid improving global trading conditions, the UK’s net trade position is likely to remain under pressure from strong import growth, with little sign that businesses or consumers are switching away from imports towards domestic alternatives, despite their higher cost."

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According to latest figures from the Office of National Statistics, UK construction output fell 2.7% in March - the biggest drop since August 2012.

The decrease was caused by falls in repair and maintenance, down 2.8% as well as new work, slipping 2.6%.

It said recent adverse weather conditions could have potentially contributed to the decline, though "it is difficult to quantify the exact impact on the industry".

The UK’s trade deficit narrowed in the three months to March 2018, due mainly to falling goods imports from non-EU countries.

The difference between inflows and outflows of good and services fell £700m to £6.9 billion, the ONS said.

It said the trade in goods deficit narrowed £1.5bn with non-EU countries but widened £400 million with the EU during the quarter.

UK industrial production inched up by 0.1% month-on-month in March, the same pace as in February and slightly below the consensus for growth of 0.2% in a Reuters poll of economists.

Manufacturing output, which was a bright spot last year thanks to the strong global economy, edged lower for a second month running, dropping by a monthly 0.1% after a 0.2% fall in February.

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Shares in BT are now around 8% lower after it posted worse than expected results and announced a huge restructuring.

George Salmon, an equity analyst at Hargreaves Lansdown, says:

"13,000 job cuts and a move out of central London are drastic actions, and should help deliver £1.5bn in cost savings. But they still aren’t going to be enough to dig BT out the hole it’s in.

"The dividend, which was rising 10% a year not so long ago, is set to freeze for the foreseeable future, and next year’s profits look likely to fall again.

"There are silver linings here and there... However, these improvements are being more than offset by challenging conditions elsewhere.

"Openreach terms are getting tougher, and the business-to-business and global divisions are having a torrid time. Gavin Patterson will have his work cut out if he’s to steady the ship.”

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Rolls Royce says it will build its next SUV in Britain, making it the latest car firm to expand manufacturing despite Brexit.

Boss Torsten Muller Otvos tells Today: "Rolls Royce is a truly British brand and we belong to Britain... That is part of our success story worldwide."

He says the firm would like to continue building cars at its West Sussex plant and with 90% of the cars destined for overseas markets, he is "truly interested" in seeing a Brexit deal that maintains frictionless free trade.

He won't comment on current Brexit trade proposals but says he is an optimist and believes Britain can strike a good deal.

The Bank of England will announce its decision on UK interest rates at 12pm. Here's why it matters:

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Brutal civil wars in Syria and Yemen, coupled with the return of great power rivalries between the US, Russia and China, have brought the world's arms trade into sharp focus.

And unsurprisingly it is a thriving global industry, with the total international trade in arms now worth about $100bn (£74bn) per year, Pieter Wezeman, senior researcher at the Stockholm International Peace Research Institute (Sipri), tells the BBC.

In its latest figures, the defence industry think tank says that major weapons sales in the five years to 2017 were 10% higher than in 2008-12.

And it is the United States that is extending its lead as the globe's number one arms exporter, adds Sipri.