UK finance minister Jeremy Hunt spoke alongside Bank of England (BoE) Governor Andrew Bailey on Monday while showing readiness to take measures to return inflation to its 2% target.

The policymaker spoke to finance executives at the City of London's annual Mansion House dinner as he highlights the ability to see the job through on bringing down inflation as he said, “Working with the Governor and the Bank of England, we will do what is necessary for as long as necessary to tackle inflation persistence and bring it back to the 2% target.”

UK’s Hunt also suggested businesses show restraint on profit margins while repeating his previous view saying, “The fight against inflation would have to take priority over the tax cuts.”

Market reaction

GBP/USD bulls justify hawkish comments from UK’s Hunt by refreshing the highest levels since late April 2022 to around 1.2870, up 0.05% intraday amid early Tuesday while posting a four-day winning streak of late.

Also read: GBP/USD Price Analysis: Overbought RSI prods Cable bulls at multi-day top near 1.2860 ahead of UK employment