King, unveiling the Bank of England’s Quarterly Inflation report, said the wedding of Prince William and Kate Middleton could have a similar impact on growth to the Jubilee Holiday in 2002.

He said: “The effect of the royal wedding is likely to dampen GDP growth in Q2 this year, but the size of the impact is very uncertain.

“As the extra bank holiday was in April, companies may be able to catch up any lost output in the remaining months of Q2. But the proximity of the Royal Wedding to Easter might have encouraged even more companies to move their plant closures forward than did so in 2002.”

GDP rose by 0.5% in Q1 according to the first estimate from the Office for National Statistics, rebounding from a 0.5% contraction in the fourth quarter of 2010.

King added headline GDP in Q2 is likely to be lower than the underlying output growth in the first quarter.

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Elsewhere, King reiterated CPI inflation is likely to rise above 5% this year, with higher than forecast energy prices hitting consumers and pushing up forward projections

“It is more likely than not to remain above the 2% target throughout 2012,” he said.

“The projection over that period is markedly higher than in February, mainly reflecting the recent increases in energy prices, including the likelihood they will lead to higher utility bills.”