BoE's Haskel: A 25 bps rate cut would eliminate small output gap that presently exists

The Bank of England's (BoE) modelling shows that a 25 basis points rate cut would eliminate the small output gap that is currently present in the economy, BoE policymaker Jonathan Haskel said on Friday.

Regarding the possibility of a rate cut over-stimulating the economy, "that's fine, the BoE can raite rate raise by more later," Haskel argued.

These comments seem to be weighing on the British pound. As of writing, the GBP/USD pair, which rose to a fresh daily high of 1.3050 earlier in the day, was trading at 1.3027, adding 0.15% on the day.