"The combination of little news and the passage of time have brought a bank rate cut somewhat closer," Bank of England (BoE) Chief Economist Huw Pill said on Tuesday and added: "The lack of news gives me no reason to depart from my baseline that the time for cutting bank rate remained some way off."

Key takeaways

"Caution against expectations that the Bernanke report will lead to a rapid change in how UK monetary policy is presented."

"How, when, I would vote for a bank rate cut depend crucially on how such a decision transmits to inflation, in particular along the money market yield curve."

"A cut in bank rate would not entirely undo the restrictive stance of policy."

"MPC currently needs to maintain restrictiveness in its monetary policy stance."

Market reaction

GBP/USD edged higher following these comments and was last seen rising 0.3% on the day at 1.2387.