The pound edged lower, holding near two-week lows against the dollar as a second policymaker joined Bank of England governor Mark Carney in signalling a potential rate cut.

Bank of England policymaker Silvana Tenreyro said she would be inclined to back an interest rate cut in the coming months if growth does not pick up, adding to suggestions that the central bank is edging towards pumping more stimulus into the economy.

Carney said yesterday there could be a "relatively prompt response" from the bank if the current spell of economic weakness persisted.

Although eventually likely, current talk of a potential ratecut is "premature", said RBC chief currency strategist Adam Cole.

"Most of the comments we've seen have been quite qualified. There is probably sufficient uncertainty in terms of knowing how big the bounce in activity after the election will be, to make the case for waiting and moving later on than sooner," he added.

The pound was down 0.1% against the dollar in late London trade.

It was similarly lower against the euro at 85.13 pence.

Analysts say that pound is now being kept weak due to uncertainty around Britain's future trade relationship with the EU after a transition period expires at the end of the year.

British lawmakers approved legislation that will allow Britain to leave the European Union on January 31st with an exit deal, ending more than three years of tumult over the terms of the divorce. 

However, the vote was considered a non-event for markets after Prime Minister Boris Johnson's landslide election win in December.

Still, the pound is expected to gain more than 3% against the dollar this year, supported by interest rate differentials and hopes for a smooth departure from the EU, a Reuters poll of nearly 60 forex strategists found.

Next week investors will be looking at GDP, output and inflation figures from the UK - all due on Monday.