Silvana Tenreyro, the Bank of England's rate-setter, said she needed more time to assess how the end of the government's job-saving furlough plan was influencing the labour market, adding to indications that she saw no need to hike rates.

"Uncertainty over the effects of the furlough scheme should be resolved over the coming months, which should help paint a clearer picture of the position of the labor market," Tenreyro said in a speech to the Centre for Economic Policy Research.

According to estimates, around 1 million people were likely still on the government's job retention plan when it ended at the end of September, boosting the danger of an increase in unemployment and under-employment.

Tenreyro also predicted that any increase in inflationary pressures caused by rising energy prices would be short-lived.

BOE's Tenreyro says GBP depreciation has created stronger inflation and  weak demand

She has taken a different stance on the need to raise borrowing prices than Governor Andrew Bailey, who indicated last week that the Bank of England will move to manage inflation threats.

Tenreyro stated in her address on Monday that, in addition to the labor market, she required more time to learn more about the persistence of disruptions to global and domestic supply chains, which have pushed up worldwide inflation.

"The effects of supply chain disruption should also be temporary and unwind as supply of some goods increases, and as demand rotates back towards pre-COVID consumption patterns," she
said. "The speed of this rotation is a key uncertainty, and will be related to the evolution of the pandemic around the world."

Tenreyro predicted that the recent weakening of Britain's economic recovery will continue in the coming months.