Bank of England (BoE) policymaker Catherine Mann said on Monday that the gradual pace of increase in bank rate has not tempered expectations enough, as reported by Reuters.

On a similar note, BoE Chief Economist Huw Pill argued that a fast and forceful tightening potentially by a hold or reversal was superior to a gradualist approach.

Additional takeaways from Mann

"Long-term expectation metrics apparently remain anchored and consistent with the 2% target."

"Credibility of monetary policy is intact."

"Drift in medium-term expectations is already apparent in the data."

"We cannot be complacent in the face of the short-term spikes and medium-term drift."

"Acting more forcefully now is designed to avoid depending on a deeper and longer contraction."

"If current wholesale energy prices are allowed to be passed on to households and firms, this will lead to enormous pain for millions."

"Monetary policy is a relatively blunt instrument and is ill-equipped and not intended to deal with large relative price movements like the one we’re seeing currently."

"Ratcheting-up from short-term to medium-term expectations has been apparent for a while, and could portend a persistent drift higher."

"This has the potential to cement expectations inconsistent with the 2% target which would necessitate a persistently tighter stance of monetary policy."

"We will not tolerate a persistent inflation overshoot and will stay vigilant even when headline rates start to come down."

"The more we control medium-term inflation expectations now, the less tight for long monetary policy will need to be."

Market reaction

GBP/USD showed no immediate reaction to these remarks and was last seen trading flat on the day at 1.1505.