Bank of England policymaker Catherine Mann said on Thursday that the underlying UK inflation dynamic looks pretty robust.
”Households and firms see 4% inflation in the years ahead”.
“You have a lot of different ways of looking at it. My reading is we’re not there yet,” Mann said in a question and answer session after giving a lecture at Alliance Manchester Business School.
It is worth noting that Mann voted for a bigger increase to 3.75% in December.
GBP/USD is higher following a drop in the US Dollar on the back of the US Consumer Price Index data that came in as expected on the whole, besides the one exception on a monthly basis in the headline number.
The pair has rallied to a high of 1.2246 although remains in the neutral/bearish territory while below 1.2450.