Bank of England (BOE) policymaker Silvana Tenreyro noted on Monday that the recent moderation in the gross domestic product growth looks set to continue over the winter months, as reported by Reuters.

Additional takeaways

"Uncertainty over furlough scheme effects should be resolved over the coming months, which should help paint a clearer picture of labour market."

"We will also continue to learn more about the persistence of disruptions to global and domestic supply chains and their impact on the UK inflation outlook."

"There is a possibility that higher inflation or higher inflation expectations begin to feed through into higher wage demands."

"There is also a risk that the end of the furlough scheme leads to a loosening in the labour market and moderation in wage pressures."

Market reaction

The GBP/USD pair continues to move sideways around mid-1.3700s following these comments.