Bank of England Governor Andrew Bailey said on Thursday he was "optimistic" that inflation pressures would ease sufficiently for the central bank to cut rates further, but declined to be drawn on timing.

The Bank of England has held interest rates at 5 per cent after inflation remained steady in August, but indicated it may lower borrowing costs again as soon as November. The Monetary Policy Committee’s eight-to-one decision on Thursday came after it cut borrowing costs by a quarter point at its meeting last month.