However, policymakers appeared slightly more focused on upside risks to British inflation than in previous months. Strong economic growth was unlikely to be able to continue without pushing up prices and wages, which needed to grow faster to help the BoE hit its 2 percent inflation target. The central bank also noted the possibility that sterling strength had been having a more rapid than expected effect on inflation, implying that inflation could then bounce back more strongly when temporary downward pressures on prices faded. Governor Mark Carney and other policymakers have said they expect the next move by the Bank to be a rate hike.

Thursday brought UK Retail Sales figures. Latest data showed that quantity bought in UK in March decreased by 0.5% compared with February 2015. Analysts were forecasting 0.4% increase. The largest decrease was reported by petrol stations which fell by 6.2%. In March 2015, the amount spent in the retail industry increased by 0.7% compared with March 2014 but decreased by 0.3% compared with February 2015. Non-seasonally adjusted data show that the average weekly spend in the retail industry was £6.9 billion, compared with £6.7 billion in March 2014 and £6.6 billion in February 2015.

Separate report on Public Sector Net Borrowing showed 6.7 billion pounds deficit, in line with market predictions. In March 2015, public sector net borrowing excluding public sector banks (PSNB ex) was £7.4 billion; a decrease of £0.4 billion, or 5.6% compared with March 2014. This decrease in net borrowing was largely a result of a decrease of £2.1 billion in central government net borrowing, being partially offset by an increase of £1.9 billion in local government net borrowing.

This week market will be looking at:

CBI Industrial Order Expectations (Monday 12:00)

Prelim GDP (Tuesday 10:30)

CBI Realized Sales (Wednesday 12:00)

Manufacturing PMI (Friday 10:30)

Net Lending to Individuals (Friday 10:30)