"If we act too aggressively, the Bank of England (BOE) would cause an undesirable slowdown," the central bank’s Chief Economist Huw Pill warned on Friday.
We are looking at persistence of inflationary pressures.
Price pressures becoming embedded will be trigger for more aggressive BOE action.
Inflation is uncomfortably high for policymakers and public.
I don't think the BOE is behind the curve, we are balancing risks.
Also read: BOE's Pill: Up to markets to decide if we are considering a 50 bps rate hike
GBP/USD is trimming losses to regain 1.2300 on Pill’s comments, now trading at 1.2318. The pair is still down 0.25% on the day.