Against the euro, the pound was trading 0.3% down at 1.18 euro.
However, sterling fell after the bank's announcement as investors speculated that interest rates were unlikely to rise any time soon.
The economy grew by 0.3% in the first quarter of 2017, a sharp slowdown from the 0.7% growth rate in the final three months of 2016.
Inflation is now running at 2.3 percent, above the bank's target rate of 2.0 percent, raising the possibility that the bank could lift rates to dampen rising prices.
However, with the return of inflation since June previous year, a real and painful squeeze is underway for British households.
The Bank slashed its prediction for average wage growth to 2%, significantly down from February's estimate of 3%.
But earlier yesterday, Britain's Office for National Statistics said first-quarter growth in industrial production was weaker than estimated.
The Bank of England is taking it for granted that we'll see an orderly Brexit.
Ben Brettell, senior economist at Hargreaves Lansdown, noted: "Unsurprisingly interest rates were left unchanged, with just Kristin Forbes voting for a 0.25% rise to 0.5%".
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Ishaan Malhi, CEO and founder of online mortgage broker Trussle, says: "The Bank of England's continued reluctance to raise rates certainly won't be pleasing savers, but anyone looking to buy their first home or switch mortgage can breathe a sigh of relief". A number of analysts were surprised by the bank's assumption in its forecasts that the talks would go smoothly.
As Carney made clear, sclerotic wage growth is not something that is exclusively happening because of Brexit, and in the past handful of decades myriad factors - including but certainly not limited to the rise of zero-hours contracts and the waning influence of trade unions - have helped subdue the speed at which pay packets are growing.
'Pay is now expected to be £320 lower this year than was predicted just three months ago, and more than £900 lower than the Bank thought this time last year.
The Bank said that the United Kingdom will enjoy solid growth if the exit from the European Union goes smoothly.
"The second [issue regarding wages] is that we have expected since the summer of last year that there would be a squeeze on real incomes around this time, and basically over the course of this year", Carney said. However, that statement was based on the market view over the 15 working days to 3 May, which was for only one rate rise to 0.5% over the next three years.
The Bank of England's top economists have voted to keep interest rates on hold as expected, but a warning that falling real wages for British consumers will hold back the economy more than previously expected pushed sterling slower. "The problem here is we don't think at all that Brexit will be so smooth".
"If the economy follows a path broadly consistent with the May central projection, then monetary policy could need to be tightened by a somewhat greater extent over the forecast period than the very gently rising path implied by the market yield curve underlying the May projections", the minutes said.
It said that this overshoot was "entirely" due to the impact of weak sterling and that raising interest rates would not be an effective way of tackling that inflation.
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