Bank of England policymaker Catherine Mann said on Friday that there is very little in the data that shows a reduction in inflation expectations, except in the gilt market, as reported by Reuters.

Additional takeaways

"MPC had differences over how to assess whether the economy had recovered from COVID."

"MPC also differed on weight to put on the level of employment versus participation rates, how to assess inflation expectations."

"It would be dangerous to conclude that covid has led to permanent changes in UK labour force."

"Rise in energy prices has been a surprise to central banks, geopolitical issues at play."

"Much of UK goods price inflation has come from abroad, not something boe could predict."

"QE has created a lot of liquidity, not had a big impact on the real economy."

"QE has increasingly been absorbed by the financial sector, not transmitted on to the real economy."

"If inflation dynamics of 2021 are repeated in 2022, inflation will exceed boe forecasts."

"I want to emphasise my focus on inflation expectations."

Market reaction

The GBP/USD pair largely ignored these comments and was last seen posting small daily gains at 1.3385.