Bank of England (BoE) Chief Economist Huw Pill told Times Radio on Friday that it's important for the BoE to not do "too much" on monetary policy, per Reuters.

Key takeaways

"We have had some better news of late."

"MPC's job is to return inflation to target and hold it there over medium term."

"MPC feels it needs to see the job through."

"I am confident Thursday's rate rise was necessary and appropriate."

"I do not want to steer market interest rates on day-to-day basis."

"We have to be prepared for shocks."

"We have to recognise we have done a lot with monetary policy already."

"There is still a lot of policy in the pipeline."

"MPC has changed language quite substantially."

"MPC signalled need for continued watchfulness."

"We have reasonably high degree of confidence we will see inflation fall this year."

"Focus is on whether inflation declines further ahead."

"The notion of whether we are in recession or not may vary during the year."

"It is key to see that underlying all this is very weak performance on supply side of the economy."

Market reaction

Pound Sterling struggles to find demand following these comments and GBP/USD was last seen trading slightly below 1.2200, where it was down 0.22% on a daily basis.