BoE policymaker Catherine Mann said on Tuesday that the newly detected Omicron coronavirus variant could hurt consumer confidence, which would weaken the economy's recovery from its historic pandemic hit.
But Mann said there were ways that Omicron - which health officials fear will be harder to tackle with existing vaccines - could push up inflation.
"It's a particular question mark here as to whether or not that (Omicron) is going to reduce consumer confidence and leave us again in a situation of somewhat of a slacker demand for spending than we might have thought going forward," Mann said in a question-and-answer event hosted by Barclays.
Simultaneously, the impact of Omicron on consumers may slow a shift in spending toward services, which was expected to slow inflation, she said.
Furthermore, the new variant could strain supply chains in China, where strict lockdowns have been imposed in areas affected by coronavirus outbreaks. "Under a zero COVID strategy, there are these potentials for additional disruptions to the supply chain," Mann said.
Supply chain issues caused by the pandemic since its onset nearly two years ago have played a key role in the rise in inflation that has put the Bank of England and other central banks on high alert.
Mann and six other members of the Bank of England's nine-member Monetary Policy Committee voted earlier this month to keep the Bank of England's main interest rate on hold at 0.1%, but she was in the minority calling for an early end to the Bank of England's 875 billion pound ($1.17 trillion) government bond purchase program.
Finally, Mann added that the Inflation expectations in the United Kingdom remained well-anchored.