The monetary policy is already "sufficiently restrictive," Bank of England (BoE) policymaker Swati Dhingra said during the Monetary Policy Hearings before the UK Treasury Select Committee on Wednesday, per Reuters.

Additional takeaways

"Domestic factors are likely to continue to ease the pressure on CPI inflation."

"Not yet evidence to suggest firms will seek to increase their margins."

"Labour market continues to ease as MPC's recent hiking cycle takes effect with a lag."

"Wage growth is one of the last outcomes to be impacted in the transmission of monetary policy to the real economy."

"A deferred pass-through of level changes to wages would not necessarily pose a risk to our target in the medium term."

"Will continue to focus on composition of wage growth, as well as headline figures for clearer sense of the outlook."

"Lagged effects of further tightening pose serious risks of output volatility in order to make a small dent on inflation."

Market reaction

GBP/USD came under renewed bearish pressure and dropped to a fresh 12-week low below 1.2530.