In an interview with the Western Mail newspaper, Bank of England (BOE) Chief Economist Huw Pill said he believes that more interest rate hikes are needed, adding that he is aware that could trigger an economic recession.

Key quotes

"(Too) much runs the risk that you fall into and get stuck in a deep recession, which is very costly and too little you run the risk that inflation gets this self-sustaining momentum and runs away from the target.”

"I personally think there is more that needs to be done... and we need to go not necessarily to a super restrictive stance but to a stance that takes some of that support away..."

Market reaction

GBP/USD is unfazed by these above comments, keeping its listless trading intact at around 1.2530, as of writing.