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Haldane said policy needed to stand ready to move in either direction in order for the bank to meet its 2 percent inflation target.
Sterling fell to $1.4762 after Haldane's comments, from $1.4836 beforehand, leaving it down 1.4 percent on the day. Against the euro, the pound pared gains to trade at 72.10 pence , still up 0.6 percent on the day.
British government bond futures extended gains by as much as 30 ticks to hit a contract high, while yields on 10-year gilts sank to 1.523 percent, their lowest since Feb. 6.
Britain's FTSE 100 edged higher, turning positive to trade 0.1 percent higher at 1405 GMT.