“Raising interest rates to counter higher semi-conductor or energy prices would be ‘self-defeating’, if one-off,” said Bank of England (BOE) policymaker Silvana Tenreyro in an interview with Business Live on Thursday.

Additional comments

“There is a question about whether price changes are a one-off.”

“We are also seeing temporary supply disruption from post-covid imbalances worldwide.”

“Inflation should be temporary.”

Market reaction

GBP/USD ignores these comments, as it continues to trade near-daily highs amid notable US dollar supply.

The spot is trading at 1.3723, rising by 0.48% on the day, as of writing.