Bank of England (BOE) Chief Economist Huw Pill noted on Tuesday that they saw a significant repricing of financial assets following the finance minister's statement, as reported by Reuters.

Additional takeaways

"Repricing must be seen as part of a global trend."

"Repricing reflects normalisation after a decade of easy policy."

"There is clearly a UK-specific element to repricing."

"We are monitoring UK component very closely."

"Important change in asset prices is seen as repricing."

"BoE must ensure orderly and well-functioning markets."

"MPC is not indifferent to repricing of financial assets."

"Changes in asset prices have big impact on UK macro developments."

"We must fact market moves into outlook for monetary policy."

"MPC views market developments through price stability lens."

"MPC has very good understanding of price stability goal."

"Hard not to draw conclusion that we will need significant monetary policy response."

"These are quite challenging times for pursuing CPI target."

"Market developments must also be seen in context of last week's fiscal news, energy prices."

"In my view, fiscal announcement will act as stimulus."

"Best for monetary policy to take a lower frequency, more considered approach."

"Monetary policy has limitations for fine-tuning short-term developments."

"In the mean time, we are relying on communication in run-up to November meeting."

"This approach relies on respect for BoE independence."

Market reaction

GBP/USD edged slightly higher from daily highs after these comments and was last seen gaining 0.6% on the day at 1.0750.