Bank of England (BoE) Chief Economist Huw Pill said on Monday that the rise in the policy rates to current levels can be seen as significant progress in the normalization of the monetary policy, as reported by Reuters.
"Supply disruptions appear to have eased in recent months."
"There have been some, albeit still tentative, signs of a normalisation in the patterns of consumer demand."
"We are starting to see labour market indicators turn.
"The extent to which an easing in the labour market induced by monetary tightening will weigh against inflationary pressures will depend on the wider context."
"To the extent that the level of imported gas prices remains significantly higher than in the past, then the threat of second round may well remain."
"Important question for BoE is how pragmatic and realistic UK firms and households are in accepting the macroeconomic implications of the higher imported energy and goods prices."
"The longer that firms try to maintain real profit margins and employees try to maintain real wages at pre-energy price shock levels, the more likely it is that domestically-generated inflation will achieve its own self-sustaining momentum."
"BoE must ensure that any self-sustaining momentum in inflation at rates above the 2% target is squeezed out of the system by constraining demand."
GBP/USD preserves its bullish momentum following these comments and was last seen rising nearly 1% on a daily basis at 1.2205.