Bank of England Chief Economist Huw Pill said on Tuesday that he was worried that inflation in Britain could prove stronger than expected by the central bank and interest rates might need to stay higher than investors are thinking.

The Bank of England's interest rate cut is likely to bring relief to borrowers, businesses and hard-pressed consumers across the country.

The Bank of England is cutting its main interest rate by a quarter of a percentage point to 4.25% amid concerns over the potential shock to global growth emanating from the tariff policies of the Trump administration.