Bank of England Chief Economist Huw Pill reiterated on Tuesday that they will certainly be ready to act if they see evidence of persistent price pressures, as reported by Reuters.

Additional takeaways

"I see further tightening ahead in coming months."

"When we assess inflation pressure, we need to take into account the exchange rate."

"We see ourselves as steering a narrow path between persistent inflation pressure and recession."

"Terms of trade shock means UK will be poorer, UK must decide how that reduction in income will be distributed."

Market reaction

The British pound holds its ground after these comments and the GBP/USD pair was last seen rising 0.4% on the day at 1.2300.