Governor Andrew Bailey says "interest rates remain on a gradual downward path" but cautions "the world is highly unpredictable".

The Bank of England has left its interest rates on hold at 4.25% during its Thursday meeting, though the bank has indicated that cuts were coming later in this year.

Earlier this year, the Bank of England said that it expects inflation to rise to 3.7% in the third quarter, before starting to cool into next year.