Governor of the BoE, Mervyn King, defends the bank's monetary decisions mentioning that price acceleration will ease next year after it skyrocketed to 3.7% in December, to remain above the bank's upper limit for 10 consecutive months.

He expects prices to jump to around 4% in first months of 2011 due to the rise in oil prices and increase of VAT by 2.5%, but he still see price stability after that, as sluggish wage growth, high jobless rate and government austerity measures will cool down prices amid the choppy recovery after the British economy contracted 0.5% in the fourth quarter.

It is noteworthy that the BoE left interest rate and APF quantity unchanged in January, where today's minutes are expected to show the continuation of split among the nine-member panel.