Bank of England Monetary Policy Committee member Megan Greene said the UK economy is growing faster than expected and the labor market remains resilient, suggesting the central bank has not been restrictive enough in its fight against inflation.

Speaking to the Atlantic Council on the sidelines of the International Monetary Fund (IMF) meetings in Bangkok, Greene said interest rates should be higher than the current 3.75% level, and warned her colleagues against relying on markets to tighten financial conditions. Her comments came just after the IMF raised its forecast for UK economic growth this year to 1.3% from 1%.

"The GDP data we are seeing suggests that policy is not that restrictive, and there is not that much slack in the economy," she said. She noted that some recent labor market data also indicate that slack in the job market may have peaked, "so the labor market is loose."

Greene is one of the more hawkish members of the Bank of England's Monetary Policy Committee. Over the past few months, she has consistently voted in favor of a 25 basis point hike to 4% to guard against a wage-price spiral, but has remained in the minority on the nine-member committee.

UK inflation currently stands at 3.1%, and is expected to rise to around 4% — twice the central bank's target — as the US-Iran conflict pushes up energy prices. Swap market traders are betting that the Bank of England will raise interest rates at its November policy meeting.