Bank of England Monetary Policy Committee member Megan Greene said on Tuesday that she believes the monetary policy needs to bear down on inflation. She noted that she wouldn't put too much weight on the latest fall in UK CPI as it may be driven by volatile components.
Greene also said that risks to growth in Britain are two-way and that the UK's growth above 1% would be inflationary.
The official, however, admitted that there are signs of inflation persistence going in the right direction, but the question is speed. She added that the headline CPI is expected to exceed the BoE's target at year-end.
Greene also acknowledged that the BoE pays attention to what's happening with the Fed's curve.
In addition, the policymaker said that she has reasons to believe the neutral rate has risen a bit and reiterated that she tends to favour a gradualist approach to cutting rates.