Bank of England Chief Economist Huw Pill said on Tuesday that he was worried about inflation in Britain proving stronger than expected by the central bank and interest rates might need to stay higher than investors are thinking.

The Bank of England's interest rate cut is likely to bring relief to borrowers, businesses and hard-pressed consumers across the country.

The Bank of England on Thursday lowered its interest rates for the second time this year as the U.K. central bank responds to cooling inflation and signs of a slowing economy.