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 (BoE) may need to keep higher interest rates for longer than markets are currently pricing in, as inflation could prove more persistent than anticipated, according to the central bank's chief economist.

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