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 cut interest rates by 25 basis points, even though rate-setters said they expected inflation to rise this year.