If tariffs are announced, their effect on the global economy and inflation would need to be looked at, he told CNBC's Steve Sedgwick.

"We expect to be able to cut bank rate further as the disinflation process continues, but we will have to judge meeting by meeting, how far and how fast," Bailey told a news conference

The Bank of England has lowered interest rates and halved its growth forecast for the year. Two officials surprised markets by calling for a larger cut in borrowing costs. Governor Andrew Bailey expressed caution,