"We at the Bank of England are standing ready,
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"We now believe that the economy is set for a recovery over the course of the next year or so,
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"It clearly is going to be a recovery that remains modest and slow to take off rather than anything more dramatic...but at the same time I do think there are some underlying reasons as to why that recovery should now take place,
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McCafferty said the inflationary consequences of a further rapid fall in sterling would be "damaging", voicing a view similar to that of BoE Governor Mervyn King. King said on Thursday that the bank was not seeking any further fall in the pound,
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(Reporting by Olesya Dmitracova Editing by Maria Golovnina)