Bank of England (BoE) Chief Economist Huw Pill and policymaker Jonathan Haskel are testifying before the UK Treasury Select Committee alongside Governor Andrew Bailey.

Key takeaways from Bailey's remarks

"We see signs of labour market loosening, expect it to show up more in declining vacancies and hours, rather than in higher unemployment."

"We need to see more evidence of inflation pressures easing."

"Most of our comments on pay refer to private sector, big wedge between private and public sector pay growth."

"Effect of higher public sector pay on inflation and demand depends on how it's funded."

"Economic impact of higher public-sector pay depends on whether it is funded through taxation or borrowing."

"I would urge that the rapid fall forecast for inflation is taken into account in pay demands."

Market reaction

GBP/USD preserves its bullish momentum during the European trading hours and was last seen rising 0.63% on the day at 1.2147.