Bank of England Governor Andrew Bailey said on Thursday that the supply chain problems causing inflation should be temporary, according to Reuters. The risk, he continued, is that inflation expectations become embedded and we have a very tight labour market in the UK. Policy guidance is more hazardous to give in times of elevated uncertainty, he said. 

Market Reaction

Pound sterling has not seen a notable reaction to these comments. Liquidity conditions are very thin amid US market closures. FX markets will close between 1800GMT and 2300GMT.