Mark Carney likely to warn markets they are too relaxed over interest rates

Markets keen for long-delayed post-election outlook on inflation and unemployment with rates likely to stay at 0.5%

The Bank of England returns to the spotlight this week when it unveils its latest economic forecasts against the backdrop of record low inflation and the prospect of deep government spending cuts.

The central bank is almost certain to leave interest rates unchanged at 0.5% when it announces its monthly decision on Monday, a few days later than usual to avoid the general election. City traders will be hanging on Bank governor Mark Carney's every word at Wednesday's inflation report, the first significant insight into policymakers' thinking after six weeks of election purdah, in which officials were barred from speaking in public on the economy.