Broadly positive data and above target inflation led the Bank of England to decide not to increase the size of its bond buying programme earlier this month.
“Developments on the month had been modestly positive, increasing the confidence of most members that the outlook was broadly as described in the November Inflation Report,” the minutes from the Monetary Policy Committee meeting on January 8 and 9 said.
“Inflation remained above target at 2.7 per cent and some of the factors currently contributing to higher inflation, resulting from administered or controlled sources, were likely to persist through the current year and beyond.
“There was a risk that the prospect of continued above-target inflation could result in an erosion of credibility,” the minutes added.
All members of the committee apart from David Miles voted to keep the asset purchase programme at £375bn and the base lending rate at 0.5 per cent.