Bank of England (BOE) policymaker Catherine Mann said on Thursday that price and wage dynamics in the UK were not consistent with the 2% inflation target but noted that they were not observing a wage-price spiral, as reported by Reuters.

"The BOE has communicated effectively that rates need to rise and that market expectations before the November meeting were too high," Mann added.

Market reaction

GBP/USD preserves its bullish momentum and trades near 1.2150 after these comments, rising 0.8% on a daily basis.