The Bank of England's (BoE) Monetary Policy Committee (MPC) Member Kristin Forbes said in Cardiff on Friday that the central bank may have to raise its interest rate sooner than expected if the strong pound has less of an impact on inflation than thought.

"Perhaps most important for monetary policy today, this approach also suggests that sterling's recent appreciation could create less drag on import prices and inflation than we might have expected if the levels of pass-through seen after the crisis persisted. If this plays out, monetary policy would need to be tightened sooner than based on older models," she said.