Bank of England's Monetary Policy Committee (MPC) member Megan Greene reiterated on Thursday that the monetary policy will need to remain restrictive for some time, per Reuters.

Key takeaways

"I need to see further evidence that inflation persistence is less embedded than previously feared before I would consider voting to loosen policy."

"Recent signs of persistence starting to ease are encouraging."

"Labour market has been slowly loosening."

"Brexit and the pandemic have left UK supply much weaker than in the US in recent years."

"All else equal, this would mean inflationary pressures are greater in the UK, but demand is weaker too."

"When it comes to pay growth, the UK stands out."

Market reaction

GBP/USD stays under modest bearish pressure following these comments. As of writing, the pair was down 0.15% on the day at 1.2545.