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 voted to reduce the cost of borrowing on Thursday, but slashed its growth forecasts for the UK economy.

The Bank of England on Thursday halved its forecast for UK economic growth this year, blaming global risks amid US tariff threats and deteriorating business confidence in the UK.The sharp downgrade, which estimates gross domestic product at 0.