"We expect further modest tightening in the coming months if things play out as we expect," Bank of England Chief Economist Huw Pill said on Friday, as reported by Reuters.

Additional takeaways

"We are trying to avoid the emergence of second-round effects from energy shocks."

"We have to be cautious about communicating where the neutral rate is."

"Key to see our assumption that we don't see persistence in wage and cost developments."

"If we see developments not consistent with that assumption then we would have to consider further action."

"Inflation could fall below target depending on energy markets."

"As recovery progresses, we are looking for normalisation and inflation returning to target."

Market reaction

The British pound remained under modest selling pressure following these comments. As of writing, the GBP/USD pair was down 0.33% on a daily basis at 1.3552.