While testifying before the UK Treasury Select Committee, Bank of England (BoE) Governor Andrew Bailey reiterated that it's important to return the UK to the inflation target.

Bailey added that UK households with mortgages are nowhere near as stretched as during the global financial crisis, adding that household incomes have risen in recent months.

He noted that the tragic event in the Middle East haven't yet had a big economic impact but added that they were watching them closely.

Market reaction

These comments don't seem to have triggered a noticeable reaction in GBP/USD. As of writing, the pair was up 0.13% on the day at 1.2720.