In a speech delivered on Tuesday, Jonathan Haskel, External Member of the Bank of England's (BoE) Monetary Policy Committee, said that the BoE will have to hike its policy rate if the labour market stays tight.

"From an inflation point of view, higher wages have to be matched by increased productivity and so we have to be vigilant," Haskel added.

Market reaction

The British pound remains under modest bearish pressure following these comments. As of writing, the GBP/USD pair was trading at 1.3376, where it was down 0.15% on a daily basis.