Bank of England (BOE) policymaker Silvana Tenreyro said on Monday that some inflation drivers are expected to remain short-lived and added that the monetary policy can do little to affect them, as reported by Reuters.

Additional takeaways

"Since August, we have had large upside news for near-term inflation from energy prices, an effect which should fade quickly."

"Effects of supply chain disruption should also be temporary but the speed of rotation back to normal is a key uncertainty."

"Balance of recent news on the economy is unlikely to have a large effect on the amount of tightening required over the next few years."

"Domestic cost pressures will depend on the evolution of the labour market now that the furlough scheme has ended."

"My policy votes will aim to strike a balance between these different effects and risks."

Market reaction

These don't seem to be having a significant impact on the British pound's performance against its major rivals. As of writing, the GBP/USD pair was virtually unchanged on the day at 1.3752.