Bank of England (BoE) Deputy Governor Ben Broadbent reiterated on Friday that they expect the factors behind inflation to prove to be temporary but noted some moderate policy tightening might still be necessary.
Broadbent further added that they forecast inflation to hit 4% in the last quarter of 2021 and the first quarter of 2022.
Market reaction
These remarks don't seem to be having a significant impact on the GBP's performance against its major rivals. As of writing, the GBP/USD pair was losing 0.12% on a daily basis at 1.3912.
