Many indicators are pointing to a fall in inflation, which will be "quite marked," Bank of England Governor Andrew Bailey said while testifying before the UK Treasury Select Committee on Wednesday.

Key quotes 

"When I look at it today, many of the indicators are now moving as we would expect them to move and are signalling that the fall in inflation will continue and as I've said a number of times I think will be quite marked by the end of this year."

"Wage bargaining, of course, is one thing but it has surprised us the other way in recent months."

"And the question now is as headline inflation comes down, will we see inflation expectations continue to come down? And will that be reflected into wage bargaining?"

"We are no longer in a phase where it was clear that rates needed to rise, we are now data-driven as policy is restrictive."

"Judgements on monetary policy are much finer."

"We are much nearer peak of rates, not saying we are at peak."

Market reaction

GBP/USD stays under bearish pressure and trades in negative territory below 1.2550 following these comments.