Catherine Mann, rate-setter at the Bank of England (BoE) said the Sterling could face downward pressure if investors haven't fully priced in the Fed and European Central Bank's hawkish messages.

"The important question for me with regard to the Pound is how much of that existing hawkish tone is already priced into the Pound," she stated during an interview with Bloomberg television.

"If it's already priced in, then what we see is what we get. But if it's not completely priced in, then there could be depreciation pressure."

When questioned as to what degree other central bank rhetoric regarding higher interest rates outside the UK has been priced into the Pound's value, Mann added: "They've been talking hawkish for a while, but I think perhaps there's more to go."

She also told Bloomberg that weakness in the value of the Sterling was "significant for inflation", which has declined from a peak of 11.1% in October yet remained over the 10% mark in January.

Over the last three months, the Pound is down around 1.6% against the greenback and about 3% against the Euro, Reuters reports.

Last month the Bank of England hiked rates to 4% but signalled it was close to ending a run of hikes which began in December 2021.

Mann voted in favour of the latest 50 basis point rise, along with most of the Monetary Policy Committee (MPC). Whereas in prior meetings, she has voted for larger rate hikes than the majority of her MPC colleagues.

Asked how much further the Bank of England should increase rates, Mann stated: "I've had recent speeches where I've indicated that I thought more needed to be done in order to ensure that expectations, in particular, are for a declining rate of inflation and the embeddedness to be mitigated."