BOE's Bailey:

Bank of England (BOE) Governor Andrew Bailey explained on Monday that the change in their language on the outlook for rates last week was caused by the level of uncertainty and heightened risks, as reported by Reuters.

Additional takeaways

"Core of financial system is standing up well to shock of Ukraine invasion."

"Core commodity markets are functional at the moment."

"Liquidity conditions have deteriorated in many markets."

"Margin costs have risen in commodity markets due to higher volatility."

"We must watch that step change in risk does not cause a market failure."

"We cannot take resilience in the market for granted."

"We are working closely on this at the financial stability board."

Market reaction

The GBP/USD pair stays on the back foot on these comments and was last seen trading at 1.3135, where it was down 0.4% on a daily basis.