Sterling trimmed its losses while U.K. government bond yields rose slightly after Bank of England official Catherine Mann suggested interest rates would need to remain high.

The Bank of England should continue to restrain economic activity to ensure that households and businesses don’t act in ways that would prolong a coming pickup in inflation, Catherine L. Mann said.

Mann was one of two members of the BoE's Monetary Policy Committee who last week voted for a half-point cut in interest rates ...