BoE's King faces grilling on inflation

King may also face a grilling over the bank's independence after agreeing last week to hand back 35 billion pounds in interest paid to the BoE by the government over the last three years on its 375 billion pound holdings of government bonds. It bought the bonds as part of its quantitative easing policy of injecting cash into the economy.

Economists have warned that the move further blurs the line between fiscal and monetary policy, putting the bank's cherished independence at risk, and also carries future risks. The government's budget watchdog warned the step would entail longer-term costs once interest rates start to rise.

King has always stressed that the BoE could only venture into more unconventional policies as an agent for the government because such policies ultimately put taxpayers' money at risk.