Governor Andrew Bailey tells the BBC he expects rates to continue falling, but “the course is a bit more uncertain”.

Bank of England Chief Economist Huw Pill said on Friday inflation pressures were likely to weaken further but there was a risk that future interest rate cuts could be delayed if higher inflation partly reflected longer-term behavioural shifts.

The Bank of England has cut its main interest rate by a quarter percentage point to 4%, as policy makers seek to bolster the sluggish U.K. economy.