The Bank of England needs to move cautiously with cutting interest rates because the long process of wrestling down inflation is not yet complete, BoE Chief Economist Huw Pill told Reuters.

Bank of England rate setter calls for caution amid rising inflation - Megan Greene said it is unlikely inflation persistence will ‘fade on its own accord’, and said policymakers should be cautious with rate cuts.

The Bank of England is widely expected to cut interest rates for the third time in six months later Thursday even though inflation remains above its target.

Bank of England policymaker Catherine Mann said on Tuesday that her unexpected vote for a half percentage-point cut in interest rates last week did not mean she wanted a series of rate cuts or that she would vote the same way again in March.

Bank of England Chief Economist Huw Pill pushed back against colleagues voting for a large interest rate cut, arguing that they are “rushing” to change policy too quickly.

The central bank responded to a troubling mix of stuttering economic growth, stubborn inflation and President Trump’s tariff threats.

Mann was one of two members of the BoE's Monetary Policy Committee who last week voted for a half-point cut in interest rates to 4.25%, against the majority who favoured a quarter-point cut to 4.25%.

Bank of England cuts main interest rate by quarter-point to 4.50% as British economy stagnates. 24/7 coverage of breaking news and live events

The Bank of England made its first interest rate cut of 2025 on Thursday amid ongoing concerns over sluggish growth in the British economy.

Britain is set for solid growth and falling inflation this year but the Bank of England has little scope to cut interest rates further, the NIESR think tank predicted on Wednesday in a relatively upbeat set of forecasts.