Andrew Bailey said he would not "give predictions as to when and how much", but said he was "still of the view that the path, gradually and carefully, is downwards".

The reduction in rates on Thursday marks the fourth cut within the past year and the Bank considered an even bigger cut to 4% due to concerns the global trade war could hit UK economic growth.

Mr Bailey welcomed a UK-US deal on tariffs and said it was "important as a signal, I hope, of many more to come", adding a UK trade deal with the European Union would be "beneficial".

"Maybe we need a bit of a jolt to the system to remind us that trade is important," Mr Bailey said, adding he hoped the likes of deals between the UK and US, and the UK and India, would help to "rebuild the world trading system".

On Thursday, the UK and US announced a deal to avoid tariffs on certain goods in order to boost trade.

As it announced the latest cut in interest rates, the Bank said that while a trade war could hit economic growth, it could lead to lower inflation in the UK over time as countries such as China look to divert cheap goods originally bound for America.

Mr Bailey said the path for rates was "downwards", but said future rate cuts were likely to be "gradual and careful".

The minutes of the Bank's meeting showed the rate-setting committee was divided. Of the nine members, five voted to cut rates to 4.25%, two voted in favour of a larger reduction to 4% and two voted for no change.