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The Bank of England's Monetary Policy Committee (MPC) released its January meeting minutes on Thursday. 8 members voted to keep the central bank's monetary policy unchanged. Ian McCafferty voted to hike interest rate by 0.25%.
The consumer price inflation in the U.K. was 0.1% in November, below the central bank's 2% target. The BoE noted that inflation is expected to rise modestly in the coming months, adding that low energy and food prices weigh on inflation.
"But the 40 % decline in dollar oil prices means that the increase in inflation is now expected to be slightly more gradual in the near term than forecast in the Committee's November Inflation Report projections," the central bank added.
The BoE expects that low oil prices will provide support to household spending in the United Kingdom and its major trading partners.
The central bank said that there are downside risks to the global growth, "primarily emanating from emerging markets.
All MPC members agreed to hike interest rate gradually once the BoE starts raising its interest rate and "to a lower level than in recent cycles".
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