Bank of England (BoE) Monetary Policy Committee member Catherine Mann noted on Wednesday that the gap between the headline and core inflation in the UK is more persistent than in the US and the Euro area, as reported by Reuters.

Mann further added that firms will use it if they have a high pricing power and said that they will remain on a path that has an "awful a lot of volatility."

Market reaction

GBP/USD edged slightly higher with the immediate reaction to these comments. As of writing, the pair was trading at 1.2380, where it was still down 0.3% on a daily basis.