Bank of England's Catherine Mann said there still is a lot of momentum in drivers of inflation and they will need to do more if inflation keeps rising.

Her comments come after the central bank today hiked interest rates by 75 bps in what was the biggest incremental hike since 1989.

However, the pound remains pressured on the day, falling to a low of 1.1153 and by some 2%.

''The trigger for the poor reaction for GBP was the guidance from the Bank that while 'further increases in Bank Rate may be required for a sustainable return of inflation to target,'' analysts at Rabobank explained. 

''The upshot is that today’s move has been perceived as a dovish hike by markets and once again GBP is reacting to the gloomy projections from the Bank rather than to the fact that the Bank rate is now higher- albeit to a level that was already priced in.''