Presumably he is talking about relative weakness against the euro and the inflationary impact that brings…

Sentance, who steps down soon from the MPC, also notes a big risk emerging that to the credibility of the Bank of England. He repeats that if rates are not hiked gradually now, they will have to be hiked sharply later, which will threaten growth.

There is more upside risk to inflation, Sentance says.

GBP is marginally above session lows, now at 1.6440 as month-end selling pressure abates.