The market is looking for a May rate hike for the BOE at the moment, and the odds of a hike priced in by the OIS market has jumped to 70.2% from under 50% before the meeting.
The central bank raised its near-term growth projections, citing strengthening global growth, and forecast inflation to remain above 2% target over the forecast horizon.
Strong bets of an interest rate hike from the US Federal Reserve next month continue to pressure the euro exchange rate lower.
Sterling spiked 0.8% to $1.399 and 0.3% to €1.345 against the euro after the announcement, while the FTSE 100 is down nearly 1% to 7,210 points.
He said this week's sharp falls had only taken markets back to where they were two months ago, adding that investors may have overlooked the inflationary consequences of healthy growth figures across major economies.
Broadbent played down fears that a rise in interest rates would damage the economy.
The Bank of England has indicated that the pace of interest rate increases could accelerate if the economy remains on its current track.
A hike in May would be the bank's second in six months following one in November, which was the first in a decade.
High inflation is the Bank of England's main reason for wanting to raise rates.
Furthermore, the BoE upgraded its GDP forecasts - it said it expected the United Kingdom economy to expand by 1.8%, up from the 1.6% predicted in last November, pointing to the strength of the global economy and net United Kingdom trade contributing "substantially".
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On the economy, he said that the committee expected the United Kingdom economy to continue growing, with the unemployment rate slowing, and wages rising.
And no homeowner should be expecting much of an increase in house prices any time soon.
The Bank said the economy had performed better than expected and upped its growth forecasts to 1.8 per cent in 2018, from 1.6 per cent predicted in November.
Official figures last month showed that the economy grew 0.5% in the last three months of 2017, which was faster than economists had been expecting.
It points out that the United Kingdom economic engine still "remains restrained by Brexit-related uncertainty" which is "the most significant influence on the economic outlook".
Carney did mention that monetary policy changes will depend on data - saying that "timing of the next rate hike will depend on economic data" - so between now and then inflation and consumer data points are going to be paramount.
Consumer Price Index (CPI) inflation was 0.5 percent at the time of the Brexit referendum vote in June 2016, and the surprise vote by Britain to quit the European Union (EU) deeply troubled foreign exchange markets who sent sterling into a sharp downward plunge from 1.48 USA dollars to 1.22 US dollars.
The chancellor replied by stressing the importance of boosting United Kingdom productivity and the government's efforts to make that happen.