Sterling settles lower against dollar

Sterling tilted lower in American trade against the dollar following earlier official remarks from Britain and amid a lack of data from the US, the world's largest economy. 

As of 04:51 GMT, GBP/USD fell 0.09% to 1.3814 from the opening of 1.3827, with an intraday low at 1.3796, and a high at 1.3876. 

Bank of England Chief Economist Andy Haldin said in earlier remarks that the BoE is monitoring inflation closely as it sets currently above the target, noting that the recent spike in prices is the reason behind the latest rate hike, calling otherwise for protecting households from the impact of costlier living. 

External BOE MPC Member Gertjan Vlieghe spoke about household debt at the Resolution Foundation, in London, where he pointed to credit risks as the main reason for slowing down the pace of rate hikes, noting that evidence suggests that improving labor conditions are driving wages higher. 

Vlieghe said the path of interest rates depends on economic outlook, which remains uncertain in the next two years due to Brexit, adding that the BoE will need more rate hikes in case global growth continues strongly. 

Markets await US inflation data later this week, specifically consumer and producer prices in addition to retail sales, industrial, housing, and consumer confidence data.