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 quarter-percentage-point reduction to 4.5% was in line with expectations.But investors were surprised by two officials who unexpectedly voted for an outsized rate cut.One analyst said their decision may reflect worries some policymakers have about the headwinds to growth.