Bank of England Governor Andrew Bailey comments on the monetary policy as he testifies before the UK Treasury Select Committee on Wednesday.

Key takeaways

"UK inflation reflects series of supply shocks."

"We are now seeing signs that supply chain shock is starting to fade."

"Central banks worldwide have faced a sequence of supply shocks that couldn't have been predicted."

"Quantitative easing has not made a very big contribution to the UK inflation overshoot."

Market reaction

GBPUSD showed no immediate reaction to these comments and it was last seen trading modestly higher on the day at 1.1885.