He said: "We maintain the view that the Bank is being too upbeat on the growth outlook with some pretty optimistic assumptions, particularly relating to the likely pick-up in wage growth".
The central bank noted that aggregate demand slowed in the first quarter, with the slowdown concentrated in consumer-facing sectors.
At the same time the MPC's growth forecast for 2017 was trimmed from 2% to 1.9%, largely due to a fall in household income and spending.
The reduction in the growth forecast - from 2 per cent to 1.9 per cent - came after a sharp slowdown in GDP in the first quarter of the year and after figures from the Office for National Statistics showed manufacturing output fell 0.6 per cent in March, while construction dipped 0.7 per cent as industrial output as a whole slumped 0.5 per cent. Samuel Tombs, chief United Kingdom economist at Pantheon Macroeconomics, said, "March's simply terrible trade figures demonstrate that Britain is failing to capitalise on sterling's depreciation".
The CBI has responded to the decision to keep interest rates at 0.25 per cent and the Bank of England reducing its growth forecast for 2017.
Mr Carney said: "Wages are still growing and we expect the pace of growth will accelerate as this year progresses and continue into 2018 and 2019". The title was a reference to earlier comments that the decision on adjusting rates would come into "sharper relief" around that time.
The yield on the benchmark 10-year gilts, slumped 3 basis points to 1.13 percent, the super-long 30-year bond yields plunged almost 2 basis points to 1.77 percent while the yield on the short-term 2-year traded 1/2 basis point lower at 0.12 percent by 10:00 GMT.
'The squeeze that's coming from rising import prices doesn't last forever.we're seeing it pretty acutely right at the moment but it does sort of dwindle over the forecast period and that contributes to a rise in income growth in real terms'.
But he warned that if wage growth fails to rise, "there will be consequences".
Interest rates are set by the Bank's Monetary Policy Committee (MPC), which is tasked with keeping inflation at 2%. Usually Bank of England inflation forecasts show inflation falling steadily back to target.
The Bank of England signalled it may have to raise interest rates sooner than what is being anticipated by the markets, as it kept monetary policy unchanged at the end of its two-day meeting today. "For some time, the responses of financial markets and households to the UK's decision to leave the European Union have diverged", he said. "There had also been evidence of a slowing housing market activity and prices, which, in the past had been accompanied by a softening in consumption growth", the minutes said.
The pound recently jumped to higher levels, on the backdrop of the announcement of a snap election in the UK.
Instead of its usual nine members, the MPC only had eight members attending the May meeting, as the Bank is yet to replace Charlotte Hogg, its former deputy governor. Sterling also fell against the euro and the yen, easing to 0.8445 per euro and 146.57 yen respectively in afternoon European trading.