Bank of England (BOE) Governor Andrew Bailey noted on Monday that they are beginning to see evidence of a slowdown in the UK's economic growth, as reported by Reuters.
Additional takeaways
"In the UK and elsewhere, we are facing a very large shock to aggregate income and spending."
"Unfortunately, there is more to come on inflation shock."
"Shock from energy prices this year will be larger than in any single year in the 1970s."
"There are risks in both directions for outlook."
"Very important to bear in mind that inflation hurts the least well off the hardest."
"Very large trade-off between inflation and output."
"The task we have is clear but hard, we will stick to it."
"Appropriate to tighten in these circumstances, but there are risks to inflation on both sides."
Market reaction
The GBP/USD pair showed no immediate reaction to these remarks and was last seen losing 0.3% on a daily basis at 1.3148.