Bank of England (BoE) Chief Economist Huw Pill said on Tuesday that they still have some work to do on inflation persistence, as reported by Reuters.

Key takeaways

"UK labour market remains pretty tight by historical standards."

"Pay growth data is consistent with small decline in Q1."

"Rates of pay growth remain quite well above what would be consistent for meeting 2% inflation target sustainably."

"We need to keep a restrictive stance on monetary policy that continues to bear down on domestic inflation persistence."

"Not unreasonable to believe that over summer we will see enough confidence to consider rate cuts."

Market reaction

GBP/USD stays under modest bearish pressure following these comments and was last seen losing 0.22% on the day at 1.2530.