"Incoming data suggest an increasingly stark trade-off in terms of rising and persistent inflation versus deteriorating real income," Bank of England policymaker Catherine Mann said on Monday, as reported by Reuters.

Additional takeaways

"Incoming data on inflation show increasingly domestic embeddedness, persistence and momentum."

"Countervailing factors importantly and increasingly are likely to support consumption spending in the near term."

"Domestic conjunctural situation is characterized by very high inflation."

"If the Fed tightens at the currently expected pace and the ECB musters an increase soon, the scenarios outlined above suggest additional depreciation pressure on sterling."

Market reaction

GBP/USD edged lower from session highs after these comments and was last seen posting small daily gains at 1.2245.